India's Balance of Payments Surges to $45.4B Surplus

India's balance of payments for August presented a strong surplus of $45.4 billion, a notable shift from a deficit of $5.6 billion in the same month of the previous year. This positive outcome was primarily propelled by a significant increase in the capital account surplus, which reached $50.6 billion compared to $0.5 billion a year prior.

The surge in the capital account was largely influenced by substantial non-resident deposits totaling $83 billion during August. However, this gain was partially offset by a net outflow of $22.4 billion under external commercial borrowing.

Concurrently, the current account deficit narrowed to $5.2 billion from $6.1 billion year-on-year. This improvement was attributed to a reduced merchandise deficit and an expanded surplus in services trade, according to data from the Reserve Bank of India.