New Delhi, September 4 (IANS). Due to the steps taken by the Reserve Bank of India, India's balance of payments surplus may remain between $65-75 billion in FY 27. This information was given in a report.
The Bank of Baroda report estimated that due to strength in service exports and remittances, the current account deficit could remain between 1-1.25 percent of GDP.
Apart from this, the inflow of $ 136.4 billion under the schemes launched by the RBI to attract foreign exchange has strengthened the country's foreign exchange reserves and prevented the devaluation of the domestic currency.
“The future of the economy looks good. Even though there is still uncertainty regarding the situation in the Middle East, India is now in a stronger position to face external shocks,” the report said.
India's foreign exchange assets increased by $47.9 billion, taking total foreign exchange reserves to a record $729.3 billion.
Under the schemes launched by the RBI in June to attract dollars, about $127.2 billion was raised through foreign currency non-resident (bank) i.e. FCNR (B) deposits, which is more than 90 per cent of the total inflow. At the same time, $ 5.3 billion was raised in foreign currency through external debt (OFCB) and $ 3.9 billion through external commercial borrowing (ECB).
Many banks increased interest rates on 3-5 year FCNR (B) deposits from around 2-4 per cent to 6-7 per cent, making these deposits more attractive for NRIs.
The report noted that the RBI is actively absorbing excess liquidity as it has announced VRRR auctions worth a total of Rs 53.5 lakh crore between August 6 and September 2.
The government and the RBI have announced these measures to boost inflows as the US-Iran war posed major challenges to the Indian economy. Concerns about external stability had increased due to rising oil prices and continued FPI outflows. Due to this, pressure was being seen on the rupee against the dollar.
–IANS
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