Key Points
Economists are lowering their forecasts for Indias current-account shortfall, thanks to favorable trade trends that are proving to be a blessing for the rupee currently among the worst performers in emerging Asia...
Barclays Plc expects the gap in current account the broadest measure of trade in goods and services to be 1.9% of gross domestic product in the year starting April 1, down from a 2.3% deficit it had estimated earlier..
Citigroup Inc. slashed its forecast even further to 1.4% of GDP from 2.2% previously, reflecting a steady drop in goods imports and strength in services exports...
We are encouraged by the fact that the narrowing of the trade deficit has sustained and services exports remain strong, said Ashish Agrawal, head of foreign-exchange and emerging-market macro strategy research at Barclays in Singapore..
India is home to about 40% of global GCCs, and this ratio is only expanding as they rise in scope, an HSBC report said.. Services trade surplus is truly a hero in Indias foreign trade story right now, said Dhiraj Nim, an economist and forex strategist at Australia and New Zealand Banking Group, who is confident the trend will continue...
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