The Hindu Business Line : Current a/c turns surplus at $500 m

THE country's current account registered a surplus of $0.5 billion in the July-September quarter as compared to a deficit of $1.2 billion in the previous quarter.

Prior to that the country had witnessed surplus positions for six consecutive quarters since third quarter of 2001-02.

Significantly, the country's over balance of payments has registered a net inflow of $8.4 billon in July-September quarter this year as against the inflow of $4.9 billion in corresponding period of the previous year.

Overall balance comprising current account surplus ($0.5 billion), capital account surplus ($7.5 billion) and errors and omissions ($0.3 billion) showed higher net inflow of $8.4 billion, according to the figures released by RBI today.

Despite higher imports, higher invisibles have led to a surplus position once again. Net position of the invisibles account registered a surplus of $6.7 billion for July-September 2003 higher than the surplus of $4.3 billion seen in the corresponding period of the previous year.

Private transfers (net), comprising mainly remittances and local withdrawals from NRI deposits, were higher at $4.8 billion than $3.6 billion in July-September 2002.

The trade deficit on payments basis increased mainly on account of higher imports to $6.2 billion in the quarter under review as compared to $2.7 billion in the corresponding period of the previous year.

During this period on payments basis, merchandise exports increased by 8.9 per cent to $14.6 billion up from $13.4 billion in the corresponding period of the previous year. Imports during the same period stood at $20.8 billion as compared with $16.0 billion in the corresponding period of the previous year.

Higher inflows were witnessed on both the FDI front as well as the portfolio investment front, with net inflows under foreign investment comprising both amounting to $3.1 billion up from $0.5 billion in the corresponding period of the previous year.