The country's current account surplus rose to $19.8 billion or 3.9 per cent of GDP in the June quarter as merchandise imports declined amid the COVID-19 pandemic, the Reserve Bank of India said on Wednesday. The surplus came on top of a surplus of $0.6 billion (0.1 per cent of GDP) in the preceding quarter, the RBI added.
"The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to $10.0 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis," RBI said in a statement. Net services receipts remained stable, primarily on the back of net earnings from computer services, RBI said.
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.2 billion, a decline of 8.7 per cent from their level a year ago, the central bank said.
Net foreign portfolio investment was $0.6 billion as compared with $4.8 billion in Q1 of 2019-20 as net purchases in the equity market were offset by net sales in the debt segment, RBI added.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
