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Our Bureau

Mumbai, June 30 For the first time in nearly two years, India’s current account recorded a surplus in the fourth quarter of last fiscal.

The current account is the difference between trade balance and net invisibles (comprising services, transfers, and other income).

The current account recorded a surplus of $4.747 billion in the January-March quarter as against a deficit of $1.526 billion in the same period last year.

The last time the current account recorded a surplus was in the fourth quarter of FY2007.

However, for the full year (2008-09), the current account balance reflected a higher deficit of $29.817 billion as against a deficit of $17.034 billion in the previous financial year.

The current account was back in black in the January-March quarter, helped by lower trade deficit (difference between exports and imports) and sustained support from surplus in the invisibles account.

According to the RBI’s statement on Balance of Payments, despite higher net invisibles surplus, the large trade deficit led to a higher current account deficit in FY2009.

In the fourth quarter of FY2009, the capital account (comprising foreign direct investment, portfolio investment and other investment) balance recorded a deficit of $4.447 billion as against a surplus of $26.516 billion in the corresponding quarter last year.

Net invisibles stood higher at $89.6 billion in FY2009 as against $74.6 billion in FY2008. Higher receipts under private transfers and software services were the main reasons for the robust net receivables position.

Private transfers (mainly inward remittances from Indians abroad at $46.38 billion matched receipts on account of software exports ($47 billion).

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