India's current account deficit narrowed sharply to USD 4.6 billion, or 0.7 percent of GDP, in January-March 2018-19 from USD 13.0 billion, or 1.8 percent of GDP, in the same period a year earlier. The goods deficit decreased to USD 35.2 billion from USD 41.6 billion a year ago and the primary income gap shrank to USD 6.9 billion from USD 7.8 billion. Meanwhile, the services surplus widened to USD 21.3 billion from USD 20.2 billion in the previous year while the secondary income surplus was unchanged at USD 16.2 billion. Considering 2018-19 fiscal year, the current account gap increased to USD 57.2 billion, or 2.1 percent of GDP, from USD 48.7 billion, or 1.8 percent of GDP, in 2017-18 on the back of widening of the trade deficit. Current Account in India averaged -2119.55 USD Million from 1949 until 2019, reaching an all time high of 7360 USD Million in the first quarter of 2004 and a record low of -31857.18 USD Million in the fourth quarter of 2012.
Current Account in India is expected to be -15000.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in India to stand at -11000.00 in 12 months time. In the long-term, the India Current Account is projected to trend around -14600.00 USD Million in 2020, according to our econometric models.