Country's current a/c deficit at 1.5 pc of GDP in 2007-08: RBI
A high import bill has turned India's current account balance into deficit of $1.04 billion in the fourth quarter of 2007-08 against $4.25 billion surplus a year ago, data released by the RBI on Monday revealed.
By PTI |
MUMBAI: Surging oil import bill has turned India's current account balance into deficit of $1.04 billion in the fourth quarter of 2007-08 against $4.25 billion surplus a year ago, despite growth in software services exports and rise in remittances from overseas Indians.
With this, India's current account deficit rose by 77 per cent to touch $17.4 billion, constituting 1.5 per cent of GDP last fiscal against $9.8 billion or 1.1 per cent of GDP in 2006-07, data released by the Reserve Bank said on Monday.
While there was significant growth in oil imports at 88.9 per cent in the fourth quarter of last fiscal, non-oil imports recorded a growth of 30.6 per cent.
The sharp increase in oil imports reflected the impact of increasing oil price on the Indian basket of international crude (a mix of Oman, Dubai and Brent varieties), which rose to $93.9 per barrel in the fourth quarter of last fiscal from $56.4 a barrel a year ago, the central bank said.
The country's balance from services trade and net money transfer (invisibles) by overseas Indians rose to $22.8 billion in the fourth quarter of 2007-08 against $17.1 billion a year ago, the central bank said.
While invisible receipts showed a growth of 26.2 per cent in Q4 of 2007-08 against 25.6 per cent a year ago, payments recorded a growth of 20 per cent against 52.7 per cent.
"Steady expansion in invisibles surplus reflected mainly the growth in exports of software services and travel receipts and inward remittances from overseas Indians for family maintenance," RBI said.
Current account balance includes balance of trade (export minus import), besides net balance in invisibles.
With this, India's current account deficit rose by 77 per cent to touch $17.4 billion, constituting 1.5 per cent of GDP last fiscal against $9.8 billion or 1.1 per cent of GDP in 2006-07, data released by the Reserve Bank said on Monday.
While there was significant growth in oil imports at 88.9 per cent in the fourth quarter of last fiscal, non-oil imports recorded a growth of 30.6 per cent.
The sharp increase in oil imports reflected the impact of increasing oil price on the Indian basket of international crude (a mix of Oman, Dubai and Brent varieties), which rose to $93.9 per barrel in the fourth quarter of last fiscal from $56.4 a barrel a year ago, the central bank said.
The country's balance from services trade and net money transfer (invisibles) by overseas Indians rose to $22.8 billion in the fourth quarter of 2007-08 against $17.1 billion a year ago, the central bank said.
While invisible receipts showed a growth of 26.2 per cent in Q4 of 2007-08 against 25.6 per cent a year ago, payments recorded a growth of 20 per cent against 52.7 per cent.
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"Steady expansion in invisibles surplus reflected mainly the growth in exports of software services and travel receipts and inward remittances from overseas Indians for family maintenance," RBI said.
Current account balance includes balance of trade (export minus import), besides net balance in invisibles.
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