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Date : Sep 11, 2015
Developments in India’s Balance of Payments during the First Quarter (April-June) of 2015-16

Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1) i.e., April-June 2015-16 are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q1 of 2015-16

  • India’s current account deficit (CAD) narrowed to US$ 6.2 billion (1.2 per cent of GDP) in Q1 of 2015-16 from US$ 7.8 billion (1.6 per cent of GDP) a year ago.

  • This improvement was mainly on account of the merchandise trade deficit (US$ 34.2 billion during Q1 of 2015-16) which contracted on a year-on-year (y-o-y) basis due to a larger absolute decline in merchandise imports relative to merchandise exports.

  • The reduction in the CAD was also enabled by higher net earnings through services and lower outflow on account of primary income (profit, dividend and interest).

  • Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 16.2 billion, a marginal decline from their level a year ago.

  • In the financial account, net inflows of foreign direct investment were higher on a y-o-y basis, however, portfolio investment declined sharply, almost entirely in the debt segment.

  • Non-resident Indian (NRI) deposits received by commercial banks during the quarter at US$ 5.9 billion were more than double the net inflow into these accounts in Q1 of last year.

  • Net loans availed by banks witnessed an inflow of US$ 5.4 billion, mainly on account of a fall in foreign currency assets held abroad by banks.

  • In April-June 2015 there was net accretion of US$ 11.4 billion to India’s foreign exchange reserves on a BoP basis; which was marginally higher than the accretion in the corresponding quarter of last year (Table 1).

Table 1: Major Items of India's Balance of Payments
(US$ Billion)
Apr-Jun 2015 P Apr-Jun 2014 PR
Credit Debit Net Credit Debit Net
A. Current Account 126.6 132.7 -6.2 139.2 147.0 -7.8
1. Goods 68.0 102.2 -34.2 81.7 116.3 -34.6
Of which:
POL 8.2 24.7 -16.5 16.8 40.4 -23.6
2. Services 38.0 20.6 17.4 37.6 20.6 17.0
3. Primary Income 3.2 8.8 -5.6 2.3 9.0 -6.7
4. Secondary Income 17.3 1.1 16.2 17.6 1.1 16.4
B. Capital Account and Financial Account 140.3 133.6 6.6 144.6 136.6 8.0
Of which:
Change in Reserve (Increase (-)/Decrease (+)) 0.0 11.4 -11.4 0.0 11.2 -11.2
C. Errors & Omissions (-) (A+B) 0.0 0.5 -0.5 0.0 0.1 -0.1
P: Preliminary; PR: Partially Revised
Note: Total of subcomponents may not tally with aggregate due to rounding off.

Alpana Killawala
Principal Chief General Manager

Press Release : 2015-2016/657


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