| Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2021-22, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q4:2021-22 -
India’s current account deficit (CAD) decreased to US$ 13.4 billion (1.5 per cent of GDP) in Q4:2021-22 from US$ 22.2 billion (2.6 per cent of GDP) in Q3:2021-22. -
The sequential decline in CAD in Q4:2021-22 was mainly on account of a moderation in trade deficit and lower net outgo of primary income. -
Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of a rise in net earnings from computer and business services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to US$ 23.7 billion, up by 13.4 per cent from their level a year ago. -
Net outgo from the primary income account, largely reflecting net income payments on foreign investment, decreased sequentially as well as on a y-o-y basis. -
In the financial account, net foreign direct investment (FDI) at US$ 13.8 billion was higher than US$ 2.7 billion in Q4:2020-21. -
Net foreign portfolio investment (FPI) recorded an outflow of US$ 15.2 billion – mainly from the equity market. -
Net external commercial borrowings (ECBs) to India were lower at US$ 3.3 billion in Q4:2021-22 as compared with US$ 6.1 billion a year ago. -
There was a drawdown of US$ 16.0 billion in the foreign exchange reserves (on a BoP basis) as against an accretion of US$ 3.4 billion in Q4:2020-21 (Table 1). BoP during 2021-22 -
The current account balance recorded a deficit of 1.2 per cent of GDP in 2021-22 as against a surplus of 0.9 per cent in 2020-21 as the trade deficit widened to US$ 189.5 billion from US$ 102.2 billion a year ago. -
Net invisible receipts were higher in 2021-22 due to increase in net exports of services and net private transfer receipts, even though net income outgo was higher than a year ago. -
Net FDI inflows at US$ 38.6 billion in 2021-22 were lower than US$ 44.0 billion in 2020-21. -
Net FPI recorded an outflow of US$ 16.8 billion in 2021-22 as against an inflow of US$ 36.1 billion a year ago. -
Net ECBs to India recorded an inflow of US$ 7.4 billion in 2021-22 as compared with US$ 0.2 billion in 2020-21. -
In 2021-22, there was an accretion of US$ 47.5 billion to foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | January-March 2022 P | January-March 2021 | 2021-22 P | 2020-21 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 218.8 | 232.2 | -13.4 | 173.4 | 181.5 | -8.1 | 798.7 | 837.4 | -38.7 | 603.5 | 579.5 | 24.0 | | 1. Goods | 118.0 | 172.5 | -54.5 | 91.3 | 133.0 | -41.7 | 429.2 | 618.6 | -189.5 | 296.3 | 398.5 | -102.2 | | Of which: | | | | | | | | | | | | | | POL | 21.3 | 49.3 | -28.0 | 8.2 | 28.7 | -20.5 | 67.5 | 161.8 | -94.3 | 25.8 | 82.7 | -56.9 | | 2. Services | 69.9 | 41.6 | 28.3 | 56.0 | 32.5 | 23.5 | 254.5 | 147.0 | 107.5 | 206.1 | 117.5 | 88.6 | | 3. Primary Income | 7.2 | 15.6 | -8.4 | 5.2 | 13.9 | -8.7 | 25.8 | 63.0 | -37.3 | 20.8 | 56.8 | -36.0 | | 4. Secondary Income | 23.7 | 2.6 | 21.2 | 20.9 | 2.1 | 18.9 | 89.3 | 8.8 | 80.5 | 80.3 | 6.8 | 73.6 | | B. Capital Account and Financial Account | 182.1 | 167.8 | 14.3 | 162.7 | 153.8 | 8.8 | 777.4 | 739.2 | 38.2 | 599.0 | 622.7 | -23.7 | | Of which: | | | | | | | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 16.0 | 0.0 | 16.0 | 0.0 | 3.4 | -3.4 | 16.0 | 63.5 | -47.5 | 0.0 | 87.3 | -87.3 | | C. Errors & Omissions (-) (A+B) | | 0.9 | -0.9 | | 0.7 | -0.7 | 0.5 | | 0.5 | | 0.3 | -0.3 | | P: Preliminary. | | Note: Total of sub-components may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2022-2023/408 | |