During the said quarter, the net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of a rise in net earnings from computer and business services.

Private transfer receipts, mainly representing remittances by Indians employed overseas, increased 13.4% YoY to $23.7 billion during the period. Net outgo from the primary income account, largely reflecting net income payments on foreign investment, decreased sequentially as well as on a y-o-y basis, shows the RBI data.

In the financial account, the net foreign direct investment (FDI) at $13.8 billion during Q4 FY22 was way higher than $2.7 billion in Q4 FY21, the period when Covid hit economies hard.

Net foreign portfolio investment (FPI) recorded an outflow of $15.2 billion – mainly from the equity market. The data show there was a drawdown of $16 billion in the foreign exchange reserves (on a BoP basis) against an accretion of $3.4 billion in Q4 FY21.

For the full fiscal year, the current account balance recorded a deficit of 1.2% of GDP in 2021-22 against a surplus of 0.9% in 2020-21 as the trade deficit widened to $189.5 billion from $102.2 billion a year ago, the RBI data shows.

Net invisible receipts were higher in 2021-22 due to an increase in net exports of services and net private transfer receipts, even though net income outgo was higher than a year ago.

Net FDI inflows were $38.6 billion in 2021-22, lower than $44 billion in 2020-21, while net FPI recorded an outflow of $16.8 billion in 2021-22, much lower than $36.1 billion a year ago.

During FY22, the net external commercial borrowings to India recorded an inflow of $7.4 billion compared with $0.2 billion in 2020-21. In 2021-22, there was an accretion of $47.5 billion to foreign exchange reserves on a BoP basis.

Net foreign portfolio investment

India's current account deficit dips 1.5% to $13.4bn in March quarter