India's current account surplus moderates in Q2 due to merchandise trade

Net services receipts rose both sequentially and year-on-year, primarily on the back of higher net earnings from computer services

India’s current account surplus moderated to $15.5 billion (2.4 per cent of Gross Domestic Product) in quarter ended September 2020 (Q2FY21) from $19.2 billion (3.8 per cent of GDP) in (Q1FY21).

The current account balance was in deficit to the tune of $7.6 billion in Q2 of 2019-20 (1.1 per cent of GDP), according to Reserve Bank of India data.

The narrowing of the current account surplus in Q2 of 2020-21 was on account of a rise in the merchandise trade deficit to $14.8 billion from $10.8 billion in the preceding quarter.

Aditi Nayar, Principal economist, Icra said the current