Current account balance posts nearly $ 20 billion surplus in first quarter
The current account surplus stood at $ 0.6 billion or 0.1% of GDP (gross domestic product) in the March quarter, which was the country’s first surplus in 13 years.
“The first quarter surplus was mainly due to a narrowing of the trade deficit to $ 10 billion, largely due to a more pronounced drop in merchandise imports in the context of the Covid-19 pandemic compared to exports on an annual basis, âthe RBI mentioned.
In addition, net service income remained stable mainly thanks to the net result from services.
With repayments exceeding new disbursements, commercial borrowing from outside India recorded net outflows of $ 1.1 billion in the first quarter of 2020-2021, compared to an inflow of $ 6 billion a year ago.
RBI data showed there was a $ 19.8 billion increase in foreign exchange reserves (on a BoP basis) compared to that of $ 14 billion in the first quarter of 2019-2020.
Private receipts – mostly representing remittances by Indians employed abroad – showed an 8.7% drop to $ 18.2 billion from their level a year ago, said RBI.
While net foreign direct investment recorded an outflow of $ 400 million, against inflows of $ 14 billion in the same quarter of the previous year.
To concern India posts nearly $ 20 billion current account surplus in first quarter