India’s current account deficit at $5.8 bn in first quarter

By IANS,

Mumbai: India’s current account deficit stood at $5.8 billion in the first quarter of the current fiscal as compared to $9 billion a year ago, the Reserve Bank of India (RBI) said Wednesday.


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The bank said in a statement that the capital account “showed a turnaround from a negative balance in the last two quarters of 2008-09 to a positive balance of $6.7 billion during the first quarter of 2009-10”.

Private transfer receipts, comprising mainly remittances from Indians working overseas and local withdrawals from NRI (non-resident Indian) rupee deposits, increased by 9.4 percent to $13.3 billion during April-June quarter from $12.2 billion a year ago.

Gross capital inflows to India revived during the June quarter as compared to the corresponding period of last year.

“The gross inflows were at $78.5 billion as compared to $90.9 billion in April-June 2008-09 mainly led by inflows under FIIs, FDI and NRI deposits,” said the RBI statement.

Gross capital outflows during the first quarter this fiscal stood lower at $71.8 billion as against $79.7 billion in the corresponding period last fiscal.

India’s external debt stood at $227.7 billion at the end of June 2009.

“The increase in external debt by $3.7 billion over the last fiscal was mainly due to increase in long-term external debt, particularly non-resident Indian (NRI) deposits,” RBI said.

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