India’s Current Account to Stay Stable with Strong Services Trade and Forex Reserves: Crisil
India’s current account is expected to remain in a stable position, supported by a strong surplus in services trade and steady inflows of remittances, according to a new report by Crisil.
The report highlights that India’s booming services sector, which includes IT, business process outsourcing (BPO), and financial services, continues to generate significant foreign exchange earnings. These earnings help balance the country’s trade deficit in goods and contribute to maintaining overall economic stability.
Additionally, the steady flow of remittances from Indian workers abroad has been a key factor in strengthening the country’s foreign exchange reserves. India is one of the largest recipients of remittances globally, with money sent by overseas Indians providing crucial support to the economy.
Crisil noted that despite global economic uncertainties, India’s strong forex reserves and services trade performance will act as a buffer, ensuring that the current account does not slip into a worrying deficit.
Experts believe that maintaining a stable current account is essential for economic growth and investor confidence, helping India navigate global challenges more effectively.
