India is likely to record a current account surplus in 2020-21, Chief Economic Advisor Krishnamurthy Subramanian said on Monday, terming it a sign of ‘under-heating’ in the economy.
“The COVID crisis is different from typical emerging market crises (where the economy is overheated, imports exceed exports as demand outstrips domestic supply and inflation shoots up) … this is a crisis of demand primarily due to a negative shock to demand,” Mr. Subramanian said at a national MNCs’ conference hosted by the CII.
“That is reflected in the current account surplus we may have this year. In Q1, we had a $19.8 billion surplus and even if we do not see that kind of performance in subsequent quarters, we would still likely have a current account surplus,” he said.
