India's Q2FY21 current account surplus narrows down sequentially (Lead)

Mumbai, Dec 30 (IANS) India's current account surplus moderated to $15.5 billion in Q2FY21 from $19.2 billion reported for the first quarter of the current fiscal.On a YoY basis, the country's Balance of Payment status was in a deficit of $7.6 billion during Q2FY20."The narrowing of the current account surplus in Q2 of 2020-21 was on account of a rise in the merchandise trade deficit to $14.8 billion from $10.8 billion in the preceding quarter," the RBI said in a statement on developments in India's Q2FY21 BoP.However, the data showed an increase in net services' receipts both sequentially and on a YoY basis, primarily on the back of higher net earnings from computer services."Private transfer receipts, mainly representing remittances by Indians employed overseas, declined on a y-o-y basis but improved sequentially by 12 per cent to $20.4 billion in Q2 2020-21.""Net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to $9.3 billion from $8.8 billion a year ago."In terms of financial account, the data pointed out an inflow in net foreign direct investment of $24.6 billion as compared with $7.3 billion in Q2 of 2019-20."Net foreign portfolio investment was $7 billion as compared with $2.5 billion in Q2 of 2019-20, largely reflecting net purchases in the equity market.""With repayments exceeding fresh disbursals, external commercial borrowings to India recorded net outflow of $4.1 billion in Q2 of 2020-21 as against an inflow of $3.1 billion a year ago."Besides, the data cited a moderation in net accretions to non-resident deposits to $1.9 billion from $2.3 billion in Q2 of 2019-20."There was an accretion of $31.6 billion to the foreign exchange reserves (on a BoP basis) as compared with that of $5.1 billion in Q2 of 2019-20."
--IANS rv/vd