India reports current account surplus of 0.9% in FY21 – Times of India

MUMBAI: India’s current account balance showed a surplus of 0.9 per cent of GDP in the financial year 2020-21, despite the Covid-19 pandemic, data released by the Reserve Bank of India (RBI) showed on Wednesday.
The current account balance showed a deficit of 0.9 per cent in same period last year.
However, the current account deficit widened to $8.1 billion or 1 per cent of GDP for the March quarter, as against a surplus of $0.6 billion or 0.1 per cent of the GDP in the year-ago period and a deficit of 0.3 per cent in the preceding December quarter.
The RBI said the current account balance in FY21 swung into the surplus territory on the back of a sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in 2019-20.
Despite the pandemic, the net foreign direct investment inflows at $44 billion were higher in FY21 than the $43 billion in 2019-20, the central bank added.
Further, net foreign portfolio investments also increased by $36.1 billion in FY21 as compared to $1.4 billion a year ago, it said.
External commercial borrowings by India Inc recorded an inflow of $0.2 billion as compared to $21.7 billion in 2019-20, the RBI data showed.
(With inputs from PTI)