Mumbai, Dec 31: India's balance of payments (BoP) for the second quarter ending September 30, 2003 saw a surplus on current account of USD 500 million benefitting from net invisible surpluses of USD 6.7 billion. The trade deficit during the July-September period stood at USD 6.2 billion while net invisibles showed a gain of USD 6.7 billion, according to data released by reserve bank of India here today.
Earnings from software exports and business process outsourcing activity helped to offset the trade deficit of USD 6.2 billion.
Trade deficit grew in the second quarter compared to USD 2.7 billion in July-September 2002 mainly due to higher imports.
Imports during this quarter stood at USD 20.8 billion as against USD 16 billion in the same quarter last year, the central bank said.
During the period under review, merchandise exports accounted for USD 14.6 billion compared to USD 13.4 billion in same period last year, showing a growth of 8.9 per cent.
Net private transfers consisting of remittances and local withdrawls by NRIs were higher at USD 4.8 billion compared to 3.6 billion in Q2 of previous year.
Bureau Report