Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2021, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q3:2021-22 -
India’s current account deficit (CAD) increased to US$ 23.0 billion (2.7 per cent of GDP) in Q3:2021-22 from US$ 9.9 billion (1.3 per cent of GDP) in Q2:2021-22 and US$ 2.2 billion (0.3 per cent of GDP) a year ago [i.e., Q3:2020-21]. -
The widening of CAD in Q3:2021-22 was mainly on account of higher trade deficit. -
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$ 23.4 billion, an increase of 13.1 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$ 5.1 billion, lower than US$ 17.4 billion a year ago. -
Portfolio investment recorded net outflow of US$ 5.8 billion as against an inflow of US$ 21.2 billion in Q3:2020-21. -
Net external commercial borrowings to India recorded outflow of US$ 0.2 billion in Q3:2021-22 as compared with US$ 1.6 billion a year ago. -
Non-resident deposits recorded net inflow of US$ 1.3 billion as compared with US$ 3.0 billion in Q3:2020-21. -
There was an accretion of US$ 0.5 billion to the foreign exchange reserves (on a BoP basis) as compared with US$ 32.5 billion in Q3:2020-21 (Table 1). BoP during April-December 2021 -
India recorded a current account deficit of 1.2 per cent of GDP in April-December 2021 as against a surplus of 1.7 per cent in April-December 2020 on the back of a sharp increase in the trade deficit. -
Net invisible receipts were higher in April-December 2021, on account of higher net receipts of services and private transfers. -
Net FDI inflows at US$ 26.5 billion in April-December 2021 were lower than US$ 41.3 billion in April-December 2020. -
Portfolio investment recorded net outflow of US$ 1.6 billion during April-December 2021 as against an inflow of US$ 28.9 billion a year ago. -
In April-December 2021, there was an accretion of US$ 63.5 billion to the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | October-December 2021 P | October-December 2020 | April-December 2021 P | April-December 2020 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 205.4 | 228.4 | -23.0 | 157.0 | 159.2 | -2.2 | 579.4 | 605.9 | -26.5 | 430.2 | 398.0 | 32.1 | | 1. Goods | 109.0 | 169.4 | -60.4 | 77.2 | 111.8 | -34.6 | 311.2 | 446.8 | -135.6 | 205.0 | 265.4 | -60.4 | | Of which: | | | | | | | | | | | | | | POL | 17.7 | 43.7 | -26.0 | 5.5 | 21.9 | -16.5 | 46.3 | 113.3 | -67.0 | 17.6 | 53.9 | -36.4 | | 2. Services | 67.0 | 39.2 | 27.8 | 53.3 | 30.1 | 23.2 | 184.7 | 105.5 | 79.2 | 150.1 | 85.0 | 65.1 | | 3. Primary Income | 5.9 | 17.6 | -11.7 | 5.7 | 15.8 | -10.1 | 18.0 | 47.4 | -29.4 | 15.7 | 42.9 | -27.2 | | 4. Secondary Income | 23.5 | 2.2 | 21.3 | 20.8 | 1.5 | 19.3 | 65.6 | 6.2 | 59.4 | 59.4 | 4.7 | 54.7 | | B. Capital Account and Financial Account | 221.3 | 198.6 | 22.7 | 171.2 | 169.5 | 1.6 | 595.2 | 569.4 | 25.7 | 436.3 | 468.9 | -32.5 | | Of which: | | | | | | | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 0.5 | -0.5 | 0.0 | 32.5 | -32.5 | 0.0 | 63.5 | -63.5 | 0.0 | 83.9 | -83.9 | | C. Errors & Omissions | 0.3 | | 0.3 | 0.6 | | 0.6 | 0.8 | | 0.8 | 0.4 | | 0.4 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2021-2022/1937 | |