The Hindu : Business : Current account surplus at $8.72 billion

Online edition of India's National Newspaper
Thursday, Jul 01, 2004

Business

Business

Current account surplus at $8.72 billion

MUMBAI, JUNE 30. Buoyed by the performance of software services and tourism sector and remittances, India's balance of payment (BoP) surplus more than doubled to $8.721 billion on the current account for fiscal 2003-04 over $4.137 billion reported in the previous financial year.

The current account surplus amounted to 1.4 per cent of gross domestic product (GDP), an all time high, according to the Reserve Bank of India here today.

For the fourth quarter ended March 31, 2004, the current account recorded a surplus of $3.441 billion.

The trade deficit during April-March at $16.706 billion widened in comparison with the corresponding period of 2002-03 at $12.910 billion, while net invisibles grew robustly to $25.427 billion ($17.047 billion in 2002-03).

In the fourth quarter of 2003-04, the trade deficit and net invisibles stood at $4.057 billion and $7.498 billion respectively.

Invisibles have been the pivot for the turnaround in the current account from deficit to surplus since 2001-02.

The RBI said with large surpluses in current and capital accounts, there was unprecedented accretion to foreign exchange reserves of $31.4 billion excluding valuation effects.

At $113 billion as at end of March 2004, India held the sixth largest stock of international reserves in the world, the central bank added.

PTI

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