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India

Lower trade deficit narrows India’s Q4 CAD to $4.6 bn

Lower trade deficit narrowed India’s current account deficit to $4.6 billion in Q4 of 2018-19.

The Reserve Bank of India’s data on India’s Balance of Payments (BoP) showed that CAD narrowed from $13 billion in Q4 of 2017-18 and $17.7 billion in the preceding quarter.

“The contraction of the CAD on a year-on-year (y-o-y) basis was primarily on account of a lower trade deficit at $35.2 billion as compared with $41.6 billion a year ago,” RBI said.

“Net services receipts increased by 5.8 per cent on a y-o-y basis mainly on the back of a rise in net earnings from telecommunications, computer and information services.”

However, remittances declined by 0.9 per cent to $17.9 billion from their level during a year ago period.

In the financial account, net foreign direct investment was stagnant at $6.4 billion in Q4 of 2018-19.

“Foreign portfolio investment recorded net inflow of $9.4 billion in Q4 of 2018-19 – as compared with $2.3 billion in Q4 a year ago – on account of net purchases in both debt and equity market,” the apex bank said.

According to the data, there was an accretion of $14.2 billion in foreign exchange reserves (on BoP basis) during the period under review as compared with $13.2 billion in Q4 of 2017-18.

As per the data, for the full-fiscal 2018-19, India’s CAD increased to 2.1 per cent of GDP in 2018-19 from 1.8 per cent in 2017-18 on the back of wider trade deficit.

“India’s trade deficit increased to $180.3 billion in 2018-19 from $160.0 billion in 2017-18… Net invisible receipts were higher in 2018-19 mainly due to increase in net services earnings and private transfer receipts,” RBI said.

“Net FDI inflows at $30.7 billion in 2018-19 were marginally higher than $30.3 billion in 2017-18. Portfolio investment recorded a net outflow of $2.4 billion in 2018-19 as against an inflow of $22.1 billion a year ago.”

In addition, the data showed that in 2018-19, there was a depletion of $3.3 billion of the foreign exchange reserves (on a BoP basis).

(IANS)

 

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India

Rs 46 cr collected under Bharat Ke Veer; Government

The Government on Monday said that a sum of Rs 46 crore has been collected and dispersed as part of the “Bharat Ke Veer” initiative for CRPF troopers who lost their lives in the February 14 Pulwama attack.

Over 80,000 people came forward in the last few days since Thursday to contribute over Rs 20 crore, a statement said.

IANS