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Date : Sep 30, 2021
Developments in India’s Balance of Payments during the First Quarter (April-June) of 2021-22

Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2021-22, are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q1:2021-22

  • India’s current account balance recorded a surplus of US$ 6.5 billion (0.9 per cent of GDP) in Q1:2021-22 as against a deficit of US$ 8.1 billion (1.0 per cent of GDP) in Q4:2020-21 and a surplus of US$ 19.1 billion (3.7 per cent of GDP) a year ago [i.e. Q1:2020-21].

  • The surplus in the current account in Q1:2021-22 was primarily on account of contraction in the trade deficit to US$ 30.7 billion from US$ 41.7 billion in the preceding quarter, and an increase in net services receipts.

  • Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of robust performance of net exports of computer and business services.

  • Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 20.9 billion, an increase of 14.8 per cent from their level a year ago.

  • Net outgo from the primary income account, mainly reflecting net overseas investment income payments, decreased sequentially as well as on a y-o-y basis.

  • In the financial account, net foreign direct investment recorded inflow of US$ 11.9 billion as against outflow of US$ 0.5 billion in Q1:2020-21.

  • Net foreign portfolio investment was US$ 0.4 billion as compared with US$ 0.6 billion in Q1:2020-21.

  • Net external commercial borrowings to India recorded inflow of US$ 0.5 billion in Q1:2021-22 as against an outflow of US$ 0.6 billion a year ago.

  • Net inflow on account of non-resident deposits decreased to US$ 2.5 billion from US$ 3.0 billion in Q1:2020-21.

  • There was an accretion of US$ 31.9 billion to the foreign exchange reserves (on a BoP basis) as compared with that of US$ 19.8 billion in Q1:2020-21 (Table 1).

Table 1: Major Items of India's Balance of Payments
(US$ Billion)
  April-June 2021 P April-June 2020
  Credit Debit Net Credit Debit Net
A. Current Account 180.0 173.5 6.5 122.4 103.3 19.1
1. Goods 97.4 128.1 -30.7 52.2 63.2 -11.0
  Of which:            
          POL 13.0 31.0 -18.0 4.8 13.2 -8.3
2. Services 56.2 30.4 25.8 47.0 26.2 20.8
3. Primary Income 5.4 13.0 -7.5 5.0 12.7 -7.7
4. Secondary Income 20.9 1.9 19.0 18.2 1.2 17.0
B. Capital Account and Financial Account 155.3 161.4 -6.1 120.2 138.6 -18.5
  Of which:            
          Change in Reserves [Increase (-)/Decrease (+)] 0.0 31.9 -31.9 0.0 19.8 -19.8
C. Errors & Omissions (-) (A+B)   0.4 -0.4   0.6 -0.6
P: Preliminary
Note: Total of subcomponents may not tally with aggregate due to rounding off.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/960


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