India’s current account deficit widened to $8.1 billion in Q4FY21 from a deficit of $2.2 billion in the preceding quarter.
During the same quarter of the previous year Balance of Payment was in surplus of $0.6 billion in Q4FY20.
“India’s current account balance (CAB) recorded a deficit of Q4:2020-21, primarily on account of a higher trade deficit and lower net invisible receipts than in the corresponding period of the previous year,” the RBI said in a statement.
“Net services receipts increased on the back of a rise in net earnings from computer, transport and business services on a year-on-year basis.”
However, private transfer receipts, mainly representing remittances by Indians employed overseas, increased to $20.9 billion, up by 1.7 per cent from their level a year ago.
As per RBI, in the financial account, net foreign direct investment fell to $2.7 billion from $12 billion in Q4FY20.
“Net foreign portfolio investment (FPI) increased by $7.3 billion – mainly on account of net purchases in the equity market – as against a decline of $13.7 billion in Q4:2019-20.”
“Net external commercial borrowings to India was lower at $6.1 billion in Q4:2020-21 as compared with $9.4 billion a year ago.”