Import dips, current account in surplus
The country had a current account surplus of $4.75 billion in the quarter ended March 31, 2009 from a deficit of $1.52 billion a year ago. HT Correspondent reports.business Updated: Jun 30, 2009 23:40 IST
The country had a current account surplus of $4.75 billion in the quarter ended March 31, 2009 from a deficit of $1.52 billion a year ago. The current account balance witnessed a turnaround during the quarter, due to lower trade deficit and sustained support from surplus in invisibles account, which include remittances by non-resident Indians.
The current account deficit for 2008-09 widened to $29.82 billion, or 2.6 per cent of gross domestic product (GDP). In 2007/08 the deficit was $17.03 billion — or 1.5 per cent of GDP.
The Reserve Bank of India said the balance of payments surplus in January-March, was $300 million, compared with a deficit of $17.88 billion in the October-December quarter.
The trade deficit was lower as imports shrunk by 27.3 per cent in the fourth quarter of 2008-09 after a gap of almost seven years, led by lower crude oil prices and lower non-oil imports reflecting the slowdown in the domestic economy.
Despite this, software services exports (4.1 per cent of GDP) and private transfer receipts (4.0 per cent of GDP) were higher in 2008-09 than the previous year.
Net outflows continued in the fourth quarter mainly due to outflows under portfolio investment, banking capital and short-term trade credit.