India’s Q2FY21 current account surplus narrows down sequentially (Roundup)

Mumbai, Dec 30 : India’s current account surplus moderated to $15.5 billion in Q2FY21 from $19.2 billion reported for the first quarter of the current fiscal.
On a YoY basis, the country’s Balance of Payment status was in a deficit of $7.6 billion during Q2FY20.
“The narrowing of the current account surplus in Q2 of 2020-21 was on account of a rise in the merchandise trade deficit to $14.8 billion from $10.8 billion in the preceding quarter,” the RBI said in a statement on developments in India’s Q2FY21 BoP.
However, the data showed an increase in net services’ receipts both sequentially and on a YoY basis, primarily on the back of higher net earnings from computer services.
“Private transfer receipts, mainly representing remittances by Indians employed overseas, declined on a y-o-y basis but improved sequentially by 12 per cent to $20.4 billion in Q2 2020-21.” “Net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to $9.3 billion from $8.8 billion a year ago.”