The surplus stood at 2.4 percent of the gross domestic  (money gram) product in the latest quarter, compared with a deficit of $7.6 billion, or 1.1 percent of GDP, in the same period a year ago.

                                      current-account-surplus-shrinks-to-$15.40-billion-


Mumbai: 

India's current account surplus shrank to $15.5 billion in the July-September (money gram)  quarter from a record $19.2 billion in April-June as its merchandise trade deficit grew, the Reserve Bank of India said on Wednesday. The surplus stood at 2.4 percent of the gross domestic product in the latest quarter, compared with a deficit of $7.6 billion, or 1.1 percent of GDP, in the same period a year ago, (money gram) RBI data showed. The recent current account surpluses -- three straight quarters -- has largely been caused by a decline in the country's trade deficit, caused by the COVID-19 pandemic, and a drop in economic activity.

"The current account surplus remained robust in Q2 FY2021, despite the entirely expected moderation from the level recorded in the lockdown quarter, given the rise in imports in tune with the resumption in economic activities," said Aditi Nayar, an economist at a credit rating agency ICRA. (money gram) 

Net services receipts increased both sequentially and on a year-on-year basis, boosted by higher net earnings from computer services, the RBI said in the statement. The country's merchandise trade balance recorded a deficit of $14.8 billion in July-September, compared with a deficit of $10.8 billion in (money gram)  the same quarter a year ago. The Indian economy contracted 7.5 percent on the year in the September quarter, data released by the National Statistical Office showed last month, recovering from a decline of 23.9 percent in the June quarter.