India’s current account deficit narrows to $5.2 billion in August as capital account surplus hits $50.6 billion

Kolkata: India’s current account deficit narrowed to 5.2 billion in August from $6.1 billion a year back while the country recorded a $50.6 billion surplus in capital account against $0.5 billion in the same period last year, data released by the Reserve Bank of India showed.

The overall balance of payments, resultantly, stood at a surplus of 45.4 billion in August against a $5.6 billion deficit in the year-year month.

The dedicated dollar mobilisation programme run by the central bank led to an accumulation of non-resident deposits of $83 billion in August, helping the country log this massive capital account surplus. However, a $22.4 billion net outflow under the external commercial borrowing head capped the gain in capital account.

The current account deficit, meanwhile, shrank on account of a narrowed merchandise deficit and widening services surplus, RBI data showed.

The balance of payments surplus stood at $58 billion for the first five months of the financial year against a $0.8 billion deficit in the year ago period. The current account deficit however widened for the five month period at $18.3 billion against $12.8 billion in the year ago months. Capital account surplus was $76.3 billion against $12 billion, central bank data showed.