Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2018-19, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q3 of 2018-19 -
India’s current account deficit (CAD) at US$ 16.9 billion (2.5 per cent of GDP) in Q3 of 2018-19 increased from US$ 13.7 billion (2.1 per cent of GDP) in Q3 of 2017-18, but moderated from US$ 19.1 billion (2.9 per cent of GDP) in the preceding quarter. -
The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at US$ 49.5 billion as compared with US$ 44.0 billion a year ago. -
Net services receipts increased by 2.8 per cent on a y-o-y basis mainly on the back of a rise in net earnings from telecommunications, computer and information services and financial services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 18.7 billion, increasing by 6.3 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 7.5 billion in Q3 of 2018-19 increased from US$ 4.3 billion in Q3 of 2017-18. -
Portfolio investment recorded net outflow of US$ 2.1 billion in Q3 of 2018-19 – as compared with an inflow of US$ 5.3 billion in Q3 last year – on account of net sale in the equity market. -
Net inflow on account of external commercial borrowings increased to US$ 2.0 billion in Q3 of 2018-19 from US$ 0.3 billion a year ago. -
In Q3 of 2018-19, there was a depletion of US$ 4.3 billion of the foreign exchange reserves (on BoP basis) as against an accretion of US$ 9.4 billion in Q3 of 2017-18 (Table 1). BoP during April-December 2018 -
The CAD increased to 2.6 per cent of GDP during April-December 2018 from 1.8 per cent April-December 2017 on the back of widening of the trade deficit. -
India’s trade deficit increased to US$ 145.3 billion in April-December 2018 from US$ 118.4 billion in April-December 2017. -
Net invisible receipts were higher in April-December 2018 mainly due to increase in net services earnings and private transfer receipts. -
Net FDI inflows in April-December 2018 increased to US$ 24.8 billion from US$ 23.9 billion in April-December 2017. -
Portfolio investment recorded a net outflow of US$ 11.9 billion in April-December 2018 as against an inflow of US$ 19.8 billion a year ago. -
In April-December 2018, there was a depletion of US$ 17.5 billion of the foreign exchange reserves (on a BoP basis). Jose J. Kattoor
Chief General Manager Press Release: 2018-2019/2317
| Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | October-December 2018 P | October-December 2017 | April-December 2018-19 P | April-December 2017-18 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 164.4 | 181.3 | -16.9 | 150.2 | 164.0 | -13.7 | 480.2 | 532.0 | -51.8 | 435.7 | 471.3 | -35.6 | | 1. Goods | 83.1 | 132.6 | -49.5 | 77.5 | 121.6 | -44.0 | 249.9 | 395.1 | -145.3 | 226.8 | 345.2 | -118.4 | | Of which: | | | | | | | | | | | | | | POL | 14.0 | 38.5 | -24.5 | 10.4 | 29.2 | -18.8 | 37.9 | 108.5 | -70.5 | 26.9 | 75.7 | -48.8 | | 2. Services | 55.2 | 34.0 | 21.3 | 50.2 | 29.5 | 20.7 | 153.5 | 93.3 | 60.3 | 143.5 | 86.1 | 57.4 | | 3. Primary Income | 7.3 | 13.3 | -6.0 | 4.8 | 11.3 | -6.5 | 18.3 | 38.7 | -20.5 | 14.1 | 34.9 | -20.9 | | 4. Secondary Income | 18.8 | 1.5 | 17.3 | 17.7 | 1.6 | 16.1 | 58.5 | 4.8 | 53.7 | 51.3 | 5.1 | 46.3 | | B. Capital Account and Financial Account | 126.8 | 108.9 | 17.9 | 169.3 | 156.3 | 13.1 | 400.9 | 348.2 | 52.7 | 472.1 | 436.1 | 36.0 | | Of which: | | | | | | | | | | | | | | Change in Reserves [(Increase (-)/Decrease (+)] | 4.3 | 0.0 | 4.3 | 0.0 | 9.4 | -9.4 | 17.5 | 0.0 | 17.5 | 0.0 | 30.3 | -30.3 | | C. Errors & Omissions (-) (A+B) | | 1.0 | -1.0 | 0.6 | | 0.6 | | 0.9 | -0.9 | | 0.4 | -0.4 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | | |