Posted 2/18/2024, 6:58:32 PM
India's Current Account Deficit Seen Below 1% in FY24 on Trade Gains
- India's current account deficit likely below 1% of GDP in FY24 due to narrower trade deficit and higher services exports
- Capital inflows through FDI and portfolio flows expected to improve in rest of fiscal year
- Higher forex inflows may not strengthen rupee as RBI could build reserves
- FY24 capital account inflows estimate revised up to $84 billion from $69 billion earlier
- RBI likely to cap rupee gains, see range of 82.80-83.20 in near term
