Mumbai (Maharashtra) [India], September 30 (ANI): India’s current account balance (CAB) recorded a surplus of USD 19.8 billion (3.9 per cent of GDP) in the April-June quarter (Q1) of 2020-21, Reserve Bank of India (RBI) said in a press release on Wednesday.
A deficit of USD 15.0 billion (2.1 per cent of GDP) was recorded a year ago in Q1 of 2019-20.
The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to USD 10.0 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis, RBI said.
Net services receipts remained stable, primarily on the back of net earnings from computer services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to USD 18.2 billion, a decline of 8.7 per cent from their level a year ago, it added.
RBI further informed that net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to USD 7.7 billion from USD 6.3 billion a year ago.
In the financial account, net foreign direct investment recorded an outflow of USD 0.4 billion as against inflows of USD 14.0 billion in Q1 of 2019-20.
Net foreign portfolio investment was USD 0.6 billion as compared with USD 4.8 billion in Q1 of 2019-20 as net purchases in the equity market were offset by net sales in the debt segment.
With repayments exceeding fresh disbursals, external commercial borrowings to India recorded a net outflow of USD 1.1 billion in Q1 of 2020-21 as against an inflow of USD 6.0 billion a year ago.
Net inflow on account of non-resident deposits increased to USD 3.0 billion from USD 2.8 billion in Q1 of 2019-20.
There was an accretion of USD 19.8 billion to the foreign exchange reserves (on a BoP basis) as compared with that of USD 14.0 billion in Q1 of 2019-20.
Net claims of NRIs stood at USD 345.7 billion at end-June 2020: RBI
The net claims of non-residents of India declined for the fourth consecutive quarter and stood at USD 345.7 billion at end-June 2020, according to an RBI release on Wednesday.
The decline of USD 29.7 billion in net claims during Q1:2020-21 was mainly due to an increase of USD 27.9 billion in reserve assets.
Among the constituents of foreign-owned assets, loans, foreign direct investment (FDI) and currency and deposits increased, whereas portfolio investment declined during the quarter.
Reserve assets continued to have the dominant share in India’s international assets.
The share of non-debt liabilities increased marginally during the quarter to 48.9 per cent as at end-June 2020.
States, UTs to borrow over Rs 2 lakh cr from markets during Oct-Dec 2020 quarter: RBI
The Reserve Bank of India (RBI) on Wednesday announced that the quantum of total market borrowings by the state governments and Union Territories for the quarter October-December 2020 is expected to be Rs 2,02,242.35 crores an official statement read.
The proposed dates for borrowing will be weekly spread from October 6 to December 29.
The states who have confirmed participation will borrow amounts in varying degrees on these dates, the RBI said. (ANI)
