Comments
The net direct investment into India increased significantly by $7.2 billion during the April to June 2011 period, against $2.9 billion in the corresponding quarter last year, according to the Reserve Bank of India's balance of payments data, released on Friday.
Investment
Direct investment into India during the first quarter was to the tune of $12.9 billion ($6.1 billion in the corresponding quarter last year). This included investment in equities, which increased to $9.4 billion from $3.7 billion last year. Direct investment by India increased by $5.7 billion in the reporting period, against $3.2 billion in the year-ago period.
However, portfolio investment in India was lower at $2.5 billion against $3.5 billion.
Loans
The net loans availed by banks was higher at $11.5 billion compared with $2.9 billion in Q1 of 2010-11, due mainly to the drawdown of their foreign currency assets held abroad as well as a rise in overseas borrowings, said the RBI.
The net loans availed by the non-Government and non-banking sectors (net ECBs) stood higher at $2.9 billion compared with $2.3 billion.
Net inflows under short-term trade credit moderated to $3.1 billion in Q1 of 2011-12, as compared to $4.3 billion in Q1 of 2010-11.
There was a net accretion in foreign exchange reserves to the extent of $5.4 billion during Q1 of 2011-12. In nominal terms (i.e. including valuation changes), foreign exchange reserves increased by $10.9 billion during the quarter, reflecting the depreciation of the US dollar against major international currencies during the quarter.
A rise in the trade deficit, despite a sharper increase in exports than imports and an increase in net export of services, led to the widening of the current-account deficit (CAD) as compared with Q1 of the previous year, said RBI.
On a Balance of Payments basis, goods exports recorded a growth of 47.1 per cent (40.4 per cent), while imports registered a growth of 33.2 per cent during Q1 of 2011-12, which was the same as last year.
The trade deficit on BoP basis, in absolute terms, amounted to $35.4 billion, against $32.3 billion in the corresponding quarter last year.
Consequently, the CAD was at $14.1 billion during the first quarter, against $12 billion in the corresponding quarter last year.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.