The Hindu Business Line : Current account surplus at $2.56 b

Mumbai, June 29 Growth in the receipts of software services, travel earnings, inward remittances from overseas Indians and higher export earnings helped the country to have a current account surplus in the fourth quarter of the fiscal 2006-07.

Current account means a record of a country’s payments and receipts for imports, exports and traded services from abroad.

The country’s current account surplus stood at $2.563 billion in the fourth quarter of the recently concluded fiscal, against $2.756 billion in the corresponding quarter of the previous fiscal, according to RBI’s data on Balance of Payments.

However, the surplus comes after a deficit in the first three quarters of the financial year 2006-07. The current account deficit for 2006-07 was thus higher at $9.609 billion, against $9.186 billion in 2005-06.

The trade balance continued to be in deficit in the fourth quarter of 2006-07 at $15.232 billion, against $11.752 billion the year ago period.

Although exports grew by 11.4 per cent to $34.052 billion from $30.579 billion, imports also jumped 16.4 per cent to $49,284 billion from $42.331 billion.

Oil imports reflected the impact of moderating oil price of the Indian basket of international crude oil, which declined to $56.6 per barrel in the fourth quarter of 2006-07, against $59.6 per barrel in the corresponding quarter of the previous year. However, non-oil imports showed momentum due to upturn in the gold and silver demand, and pick up in metalliferrous ores and metal scraps, iron and steel, besides the steady growth in capital goods, according to RBI.

Invisible receipts showed a growth of 22.6 per cent at $17.795 billion, against $14.508 billion. Of this, software services contributed $8.655 billion and private transfers (comprising remittances from Indians working overseas) brought in $8.611 billion.

The net capital flows into the country rose substantially to $17.8 billion in the fourth quarter, from $10.4 billion in the previous year. Portfolio equity inflows by foreign institutional investors were lower at $1.84 6 billion in the fourth quarter, against $4.333 billion in the previous year.

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