Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2021-22, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q2:2021-22 -
India’s current account balance recorded a deficit of US$ 9.6 billion (1.3 per cent of GDP) in Q2:2021-22 as against a surplus of US$ 6.6 billion (0.9 per cent of GDP) in Q1:2021-22 and US$ 15.3 billion (2.4 per cent of GDP) a year ago [i.e., Q2:2020-21]. -
The deficit in the current account in Q2:2021-22 was mainly due to widening of trade deficit to US$ 44.4 billion from US$ 30.7 billion in the preceding quarter and an increase in net outgo of investment income. -
Net services receipts decreased marginally over the previous quarter but increased on a year-on-year (y-o-y) basis, on the back of robust performance of the exports of computer and business services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 21.1 billion, an increase of 3.7 per cent from their level a year ago. -
Net outgo from the primary income account, mainly reflecting net overseas investment income payments, increased sequentially as well as on a y-o-y basis. -
In the financial account, net foreign direct investment recorded an inflow of US$ 9.5 billion, lower than US$ 24.4 billion a year ago. -
Net foreign portfolio investment was US$ 3.9 billion as compared with US$ 7.0 billion in Q2:2020-21. -
Net external commercial borrowings to India recorded inflow of US$ 4.1 billion in Q2:2021-22 as against an outflow of US$ 3.7 billion a year ago. -
Non-resident deposits recorded net outflow of US$ 0.8 billion as against an inflow of US$ 1.9 billion in Q2:2020-21. -
There was an accretion of US$ 31.2 billion (on a BoP basis) in Q2:2021-22 which also included SDR allocation of US$ 17.86 billion by the International Monetary Fund on August 23, 2021 (Table 1). BoP During April-September 2021 (H1:2021-22) -
India recorded a current account deficit of 0.2 per cent of GDP in H1:2021-22 as against a surplus of 3.0 per cent in H1:2020-21 on the back of a sharp increase in the trade deficit. -
Net invisible receipts were higher in H1:2021-22, on account of higher net receipts of services and private transfers. -
Net FDI inflows at US$ 21.2 billion in H1:2021-22 were lower than US$ 23.9 billion in H1:2020-21. -
Portfolio investment recorded a net inflow of US$ 4.3 billion in H1:2021-22 as compared with US$ 7.6 billion a year ago. -
In H1:2021-22, there was an accretion of US$ 63.1 billion to the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | July-September 2021 P | July-September 2020 | April-September 2021 P | April-September 2020 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 194.3 | 203.9 | -9.6 | 150.8 | 135.5 | 15.3 | 374.3 | 377.3 | -3.0 | 273.2 | 238.8 | 34.4 | | 1. Goods | 104.8 | 149.3 | -44.4 | 75.6 | 90.4 | -14.8 | 202.3 | 277.4 | -75.1 | 127.8 | 153.6 | -25.8 | | Of which: | | | | | | | | | | | | | | POL | 15.7 | 39.2 | -23.5 | 7.3 | 18.8 | -11.5 | 28.6 | 70.2 | -41.6 | 12.1 | 32.0 | -19.9 | | 2. Services | 61.4 | 35.8 | 25.6 | 49.8 | 28.7 | 21.1 | 117.6 | 66.2 | 51.4 | 96.7 | 54.9 | 41.8 | | 3. Primary Income | 6.9 | 16.5 | -9.7 | 5.0 | 14.4 | -9.4 | 12.3 | 29.5 | -17.2 | 10.0 | 27.1 | -17.1 | | 4. Secondary Income | 21.2 | 2.2 | 18.9 | 20.4 | 2.0 | 18.4 | 42.1 | 4.2 | 37.9 | 38.6 | 3.2 | 35.4 | | B. Capital Account and Financial Account | 209.6 | 200.7 | 8.8 | 145.0 | 160.7 | -15.7 | 365.3 | 362.8 | 2.5 | 265.2 | 299.3 | -34.1 | | Of which: | | | | | | | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 31.2 | -31.2 | 0.0 | 31.6 | -31.6 | 0.0 | 63.1 | -63.1 | 0.0 | 51.4 | -51.4 | | C. Errors & Omissions (-) (A+B) | 0.7 | | 0.7 | 0.4 | | 0.4 | 0.5 | | 0.5 | | 0.2 | -0.2 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2021-2022/1460 | |