Forex reserves up at $36.8 bn

Propelled by foreign investment inflows, India’s foreign exchange reserves grew by $36.8 billion for the year ended March 31, 2004, ove...

Propelled by foreign investment inflows, India’s foreign exchange reserves grew by $36.8 billion for the year ended March 31, 2004, over a rise of $21.3 billion in 2002-03.

The capital account (net) comprising foreign investment, banking capital, short term credit, external commercial borrowings and other items recorded a rise of $22.7 billion ($12.8 bn in FY-03), according to the data released by Reserve Bank of India here today. The current account balance and valuation change contributed $8.7 billion ($4.1 bn) and $5.4 billion ($4.4 billion) respectively, it said.

The major sources of accretion to forex reserves during April 2003-March 2004 were foreign investment (39.4 per cent), comprising foreign direct investment (8.5 per cent) and portfolio investment (30.8 per cent).

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Foreign investment inflows rose by 14.5 billion ($4.6). However, net inflows under banking capital were up by $6.2 billion ($8.4 bn) while non-resident Indian deposits rose by $3.6 billion ($3.0 bn).

Short term credit at $1.6 billion (USD one bn) and other items in capital account at five billion (USD 3.6 bn) were other sources of accretion. External commercial borrowings, however, contracted by $1.9 billion ($2.3 billion), RBI added. India’s foreign exchange reserves as on June 18 stood at $119.93 billion.

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