Home Economy India’s Q3FY21 current account deficit at $1.7 bn

India’s Q3FY21 current account deficit at $1.7 bn

According to the central bank on India’s Q3FY21, net services receipts increased, both sequentially and on a year-on-year basis, primarily on the back of higher net export earnings from computer services.

Mumbai, April 1, 2021 (IANS): The current account deficit stood at $1.7 billion in India’s Q3FY21 from a surplus of $15.1 billion reported for the second quarter of the current fiscal.

India’s Q3FY21

On a YoY basis, the country’s Balance of Payment (BoP) status was in a deficit of $2.6 billion during Q2FY20.

“Underlying the current account deficit in Q3:2020-21 was a rise in the merchandise trade deficit to US$34.5 billion from US$14.8 billion in the preceding quarter, and an increase in net investment income payments,” the RBI said in a statement on India’s Q3FY21 BoP.

India’s-Q3FY21-lead-ut
Image: Utkal Today

Implications of reports on India’s Q3FY21

According to the central bank, net services receipts increased, both sequentially and on a year-on-year basis, primarily on the back of higher net export earnings from computer services.

However, private transfer receipts, mainly representing remittances by Indians employed overseas, declined marginally on a y-o-y basis but improved sequentially by 1.5 per cent to $20.7 billion in Q3:2020-21.

“Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 10.1 billion from US$ 7.4 billion a year ago.”

As per the RBI, in the financial account, net foreign direct investment (FDI) recorded a robust inflow of $17 billion as compared with $9.7 billion in Q3 of 2019-20.

“Net foreign portfolio investment (FPI) was US$21.2 billion as compared with US$7.8 billion in Q3:2019-20, primarily reflecting net purchases by foreign portfolio investors in the equity market.”

Also read: IMF records 11.5% growth rate of Indian economy in 2021, proclaims only nation to register double-digit growth rate

“With repayments exceeding fresh disbursals, external commercial borrowings to India recorded net outflow of US$1.7 billion in Q3:2020-21 as against an inflow of US$3.2 billion a year ago.”

data-account-ut
Image: Utkal Today

What else did the data show?

Besides the data showed that net accretions to non-resident deposits increased to $3 billion from $0.8 billion during the corresponding period of 2019-20.

“There was an accretion of US$ 32.5 billion to the foreign exchange reserves (on a BoP basis) as compared with that of US$ 21.6 billion in Q3:2019-20.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Solve : *
20 ⁄ 5 =


Most Popular

Sanjita Mohapatra of Odisha secures the 10th rank in UPSC

Sanjita Mohapatra of Odisha made the state proud by winning laurels by securing the 10th rank in the prestigious Union Public Service...

Ratha Jatra- The Festival that the entire universe celebrates

 ‘Jagannathah svami nayana-patha-gami bhavatu me’ (May it be so that Lord Jagannath be the object of my vision.)

Ganesh Chaturthi: Celebrating the God of wisdom

Ganesh Chaturthi is a time to pray to the Lord who is known to be the remover of all obstacles from our...

Engineer’s Day: Marking the birth anniversary of M. Visvesvaraya

Every other home in India has an engineer, producing the largest percentage of engineers in the world. If engineering was a religion,...

Recent Comments