India’s Current Account Deficit At 1.1% Of GDP In Q1, Led By Broad-Based Deterioration: Motilal Oswal

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.India’s current account deficit stood at $9.2 billion (or 1.1% of gross domestic product) in Q1 FY24, higher than $1.3 billion in Q4 FY23 and lower than $17.9 billion in Q1 FY23. The number is in line with the Bloomberg consensus of a CAD of $8.9 billion and higher than our expectation of a $5.7 billion. The deterioration on a sequential (QoQ) basis was broad-based. Merchandise trade deficit widened, alongside a diminished surplus in services and a decrease in the surplus on income account. Merchandise trade deficit increased to $56.6 billion (or 6.6% of GDP) in Q1 FY24 versus $52.6 billion (6% of GDP) in Q4 FY23. At the same time, services’ surplus came down to four-quarter lowest of $35 billion (4.1% of GDP) in Q1 FY24 and the surplus on income account stood at a six quarter low of $12.3 billion (1.4% of GDP) in Q1 FY24.Higher merchandise trade deficit can be explained by lower goods exports, particularly non-oil exports ($105 billion in Q1 FY24 versus $115.8 billion in Q4 FY23 and $122.8 billion in Q1 FY23). On the other hand, petroleum exports remained robust in Q1 FY24, amounting to $18 billion (versus $15.3 billion in Q4 FY23 and $26.9 billion in Q1 FY23). Trade deficit stood at 6.6% of GDP in Q1 FY24 versus 6% of GDP in Q4 FY23, and 7.4% of GDP in Q1 FY23. Lower invisibles surplus was mainly due to deceleration in services exports to $80.6 billion in Q1 FY24 from $85.8 billion in Q4 FY23 and $76 billion in Q1 FY23. Apart from this, a decline in secondary income to $27.1 billion in Q1 FY24 from $28.6 billion in Q4 FY23 also contributed to the decline in invisibles surplus. The invisibles surplus stood at a four-quarter low of 5.5% of GDP in Q1 FY24. Notably, India’s current account surplus, excluding petroleum products came down to $16.2 billion (or 1.9% of GDP) in Q1 FY24 versus a surplus of $29.2 billion in Q4 FY23 (or 3.3% of GDP). Excluding gold, India’s CAS was just 0.1% of GDP in Q1 FY24, down from 0.6% of GDP in Q4 FY23, but better than CAD in the previous five quarters. Similarly, the CAS, excluding gold and petroleum products, came down sharply to $25.9 billion (or 3% of GDP) during the quarter..Click on the attachment to read the full report:.India’s Q1 Current Account Deficit At 1.1% Of GDP .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

India’s Current Account Deficit At 1.1% Of GDP In Q1, Led By Broad-Based Deterioration: Motilal Oswal

Notably, India’s current account surplus, excluding petroleum products came down to $16.2 billion (or 1.9% of GDP) in Q1.

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India’s Current Account Deficit At 1.1% Of GDP In Q1, Led By Broad-Based Deterioration: Motilal Oswal

Notably, India’s current account surplus, excluding petroleum products came down to $16.2 billion (or 1.9% of GDP) in Q1.

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