Country's current account balance showed surplus growth during first quarter of 2021-22India's current account balance registered a surplus of $6.5 billion in the first quarter of the current financial year, mainly due to contraction in trade deficit.According to figures released by the Reserve Bank of India (RBI) for balance of payments during April-June period of 2021-22, the surplus of $6.5 billion in current account balance during the above period was because of contraction in trade deficit to $30.7 billion from $41.7 billion in the preceding quarter (January-March of 2020-21).The surplus was also recorded due to increase in net services receipts, the central bank said.Net receipts went up both sequentially as well as on a year-on-year basis owing to good performance of net exports of computer and business services.The current account balance surplus in the first quarter of the current fiscal came in sharp contrast to the deficit of $8.1 billion which was recorded in the fourth quarter (January-March period) of 2020-21.Current account balance had recorded a surplus of $19.1 billion during the corresponding period of last year also, i.e.
April-June quarter of 2020-21.Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $ 20.9 billion in the first quarter of 2021-22, an increase of 14.8 per cent from their level a year ago, the RBI statement said.Similarly net foreign direct investment recorded inflow of $11.9 billion during April-June period of current fiscal as against outflow of $0.5 billion in the corresponding period of last fiscal.Net foreign portfolio investment was $0.4 billion in first quarter of current fiscal as compared with $0.6 billion in the first quarter of 2020-21.Net external commercial borrowings to India recorded inflow of $0.5 billion in the first quarter of 2021-22 as against an outflow of $ 0.6 billion during the year ago period.There was an increase of $31.9 billion in the foreign exchange reserves (on a balance of payment basis) during April-June period of 2021-22 as compared with that of $19.8 billion in April-June period of 2020-21.