The balance of payment (BoP) sharply jumped to $7.057 billion in the fourth quarter of 2013—14 from $2.68 billion in the same period in 2012—13, RBI data showed today.
However, on a quarter—on—quarter basis, it has massively shrunk from $19.103 billion in the December quarter due to a massive easing in the capital account in the period, the RBI data said.
For the full year, the BoP stood at $15.459 billion up from $3.83 billion in FY13.
Total capital account moderated to $9.195 billion in the March quarter from $23.787 billion in the December quarter.
The current account deficit narrowed sharply to $1.2 billion or 0.2 per cent of GDP in Q4 of FY14 from $18.1 billion or 3.6 per cent of GDP a year ago. In the December quarter, CAD stood at $4.2 billion or 0.9 per cent of GDP.
The lower CAD was primarily on account of a decline in the trade deficit as decline in imports was sharper than that in exports.
In FY14, current account deficit narrowed to 1.7 per cent of GDP, or $32.4 billion, from 4.7 per cent, or $87.8 billion in the previous fiscal.
“Contraction in the trade deficit, coupled with a rise in net invisible receipts, resulted in a reduction of the CAD to $32.4 billion in FY14,” the RBI said.
On a BoP basis, merchandise exports declined by 1.3 per cent to $83.7 billion in Q4 FY14 as against an increase of 5.9 per cent in same period last year.
The merchandise trade deficit, on BoP basis, contracted by about 33 per cent to $30.7 billion in Q4 from $45.6 billion in the corresponding quarter a year ago.
On a BoP basis, there was a net accretion of $7.1 billion to foreign exchange reserves in Q4 as compared to $19.1 billion in the preceding quarter. Reserves increased by $15.5 billion in FY14 as compared with $3.8 billion in FY13, the RBI said.