Net services receipts increased by 8.8 per cent on a y-o-y basis mainly on the back of a rise in net earnings from software services and other business services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $18.1 billion, increasing by 15.1 per cent from their level a year ago.
In the financial account, net foreign direct investment (FDI) at $6.4 billion in Q4 of 2017-18 was higher than $5 billion in Q4 of 2016-17. Portfolio investment recorded net inflow of $2.3 billion in Q4 of 2017-18 - as compared with an inflow of $10.8 billion in Q4 last year - on account of moderation in net purchases in both the debt and equity markets. Net receipts on account of non-resident deposits amounted to $4.6 billion in Q4 of 2017-18 as compared with $2.7 billion a year ago.
In Q4 of 2017-18, there was an accretion of $13.2 billion to the foreign exchange reserves (on BoP basis) as compared with an accretion of $7.3 billion in Q4 of 2016-17.