India's current account balance records deficit of USD 8.1 billion for March quarter

India's current account balance (CAB) recorded a deficit of USD 8.1 billion for the fourth quarter of the financial year 2020-21, which is 1 per cent of the Gross Domestic Product (GDP), according to data released by Reserve Bank of India on Wednesday.

Moreover, the country's current account balance (CAB) recorded a surplus of USD 0.6 billion for the fourth quarter of the financial year 2019-20.

The RBI also said that the preceding quarter (Third Quarter) of the financial year 2020-21 also reported a deficit of USD 2.2 billion.

According to a statement issued by the RBI, net claims of non-residents in India increased by USD 11.2 billion during the fourth quarter of FY 2020-21 to USD 352.7 billion in March 2021.

"During 2020-21, non-residents' net claims on India reduced by USD 22.7 billion: increase in overseas assets of Indian residents (USD 141.2 billion) exceeded the rise in foreign-owned assets in India (US$ 118.5 billion)," the RBI said.

Meanwhile, the ratio of net International Investment Position (IIP) of India to GDP also improved to (-) 13.1 per cent in March 2021 from (-) 13.9 per cent a year ago.

"Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to USD 20.9 billion, up by 1.7 per cent from their level a year ago," the RBI said.

( With inputs from ANI )

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