NEW DELHI: India’s current account balance recorded a surplus of $19.8 billion (3.9 per cent of GDP) in the first quarter (Q1) ended June 2020 as against a deficit of $15 billion (2.1 per cent of GDP) recorded a year ago, data released by the Reserve Bank of India (RBI) showed on Wednesday.
The current account surplus stood at $0.6 billion or 0.1 per cent of GDP (gross domestic product) in the March quarter, which was the country’s first surplus in 13 years.
“The surplus in Q1 was mainly due to a contraction in trade deficit to $10 billion, largely on account of a steeper decline in merchandise imports amid the Covid-19 pandemic as compared to exports on a year-on-year basis,” the RBI said.
In addition, net services receipts remained stable primarily on the back of net earnings from earning services.
With repayments exceeding fresh disbursals, external commercial borrowings to India recorded net outflow of $1.1 billion in Q1 of 2020-21 as against an inflow of $6 billion a year ago.
The RBI data showed that there was an accretion of $19.8 billion to the foreign exchange reserves (on a BoP basis) as compared with that of $14 billion in Q1 of 2019-20.
Private receipts — mainly representing remittances by Indians employed overseas — showed a decline of 8.7 per cent to $18.2 billion from its level a year ago, RBI said.
While net foreign direct investments recorded an outflow of $400 million, as against inflows of $14 billion in same quarter previous year.

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