India’s Current Account surplus of 0.9% of GDP in FY21: RBI:
As per data released by Reserve Bank of India (RBI), India has reported a current account surplus of 0.9 per cent of GDP in the Financial Year 2021 (FY21) amid the covid-19 pandemic. In 2020, it had reported current account deficit of 0.9 per cent
- India’s current account deficit has increased to USD 8.1 billion or 1 per cent of GDP for March quarter in 2021 as compared to the surplus of USD 0.6 billion or 0.1 per cent of GDP in 2020 for same period.
- India reported a deficit of 0.3 per cent in December quarter of 2020.
- As per RBI, current account balance reached into surplus territory because of sharp contraction in trade deficit to USD 102.2 billion from USD 157.5 billion in 2019-20.
- Net invisible receipts were low in FY21 because of an increasing outgo of overseas investment income payments and decrease in net private transfer receipts.
- External commercial borrowings by India Inc recorded an inflow of USD 0.2 against 21.7 billion in 2019-20.
- India witnessed an accretion of USD 87.3 billion to foreign exchange reserve on balance of payments basis.
- Current account deficit in March quarter was high on account of high trade deficit and low net invisible receipts.
- Private transfer receipts, representing remittances by Indians employed overseas, witnessed increase of USD 20.9 billion.
- It was higher by 1.7 per cent from 2020 level.
- Net outgo from primary income account, representing net overseas investment income payments, increased to USD 8.7 billion. It was USD 4.8 billion in 2020.