Surplus In Current A/c In 01-02 At $1.4 Bn

Mumbai, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
After a period of two decades, the current account registered a surplus and healthy capital flows bolstered the foreign exchange (forex) reserves to $54.1 billion on March 31, 2002 registering an increase of $11.8 billion in the year, the highest ever in a single year. During 2002-03 so far, forex reserves have risen by $6.5 billion to $60.6 billion as foriegn currency assets increased by $6.4 billion.

The current account recorded a surplus of $1.4 billion during 01-02 against a deficit of $2.6 billion during the previous year largely due to a higher invisible surplus of $14 billion. The trade defecit declined to $12.7 billion during 2001-02 from $14.4 billion during 2000-01 despite weak external demand for Indias export due to listless domestic demand for import and soft oil prices for a greater part of the year. Indias services reciepts has grown at a compounded rate of 20.3 per cent over the period of 1994-2000.

The net capital flows were higher at $9.5 billion in 2001-02 compared to $9 billion in 2000-01 led by higher FDI flows and non-resident deposits. Foriegn investment flows rose to $5.9 billion for 2001-02 compared to $5.1 billion for the previous fiscal despite a drop in portfolio investment to $2 billion on account of higher FDI inflows of $3.9 billion for 2001-02 aginst $2.3 billion in the preceeding fiscal.