India's Q4FY21 current account deficit widens to $8.1 bn

Mumbai, June 30 (IANS) India's current account deficit widened to $8.1 billion in Q4FY21 from a deficit of $2.2 billion in the preceding quarter.On a YoY basis, the country's 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 the 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."
--IANS rv/sn/vd