If ever there were a sign of how extraordinary economic developments have been this year, India recorded a stonking current account surplus in Q2. This is unlikely to last long, as oil prices will rebound, remittances drop and the goods trade deficit has already reappeared. But when the current account deficit returns, it should remain small. And with capital inflows holding up better than might have been feared, the external position should remain secure for the foreseeable future.
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