Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2022-23, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q1:2022-23 -
India’s current account balance recorded a deficit of US$ 23.9 billion (2.8 per cent of GDP) in Q1:2022-23, up from US$ 13.4 billion (1.5 per cent of GDP) in Q4:2021-221 and a surplus of US$ 6.6 billion (0.9 per cent of GDP) a year ago [i.e., Q1:2021-22]. -
Underlying the current account deficit in Q1:2022-23 was the widening of the merchandise trade deficit to US$ 68.6 billion from US$ 54.5 billion in Q4:2021-22 and an increase in net outgo of investment income payments. -
Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of rising exports of computer and business services. -
Services exports grew y-o-y by 35.4 per cent, led by broad-based growth in computer, business, transportation, and travel services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 25.6 billion, an increase of 22.6 per cent from their level a year ago. -
Net outgo on the income account, primarily reflecting payments of investment income, increased to US$ 9.3 billion from US$ 7.5 billion a year ago. -
In the financial account, net foreign direct investment increased to US$ 13.6 billion from US$ 11.6 billion a year ago. -
Net foreign portfolio investment recorded outflows of US$ 14.6 billion as against net inflows of US$ 0.4 billion during Q1:2021-22. -
Net external commercial borrowings to India recorded an outflow of US$ 3.0 billion in Q1:2022-23 as against an inflow of US$0.2 billion a year ago. -
Non-resident deposits recorded net inflows of US$0.3 billion as compared with US$ 2.5 billion in Q1:2021-22. -
There was an accretion of US$ 4.6 billion to the foreign exchange reserves (on a BoP basis) in Q1:2022-23 as compared with US$ 31.9 billion in Q1:2021-22 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | April-June 2022 P | April-June 2021 | | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 231.0 | 254.9 | -23.9 | 180.1 | 173.5 | 6.6 | | 1. Goods | 123.0 | 191.5 | -68.6 | 97.4 | 128.2 | -30.7 | | Of which: | | | | | | | | POL | 27.1 | 60.6 | -33.6 | 12.9 | 30.9 | -18.0 | | 2. Services | 76.1 | 45.0 | 31.1 | 56.2 | 30.4 | 25.8 | | 3. Primary Income | 6.3 | 15.5 | -9.3 | 5.5 | 13.1 | -7.5 | | 4. Secondary Income | 25.6 | 2.8 | 22.9 | 20.9 | 1.9 | 19.0 | | B. Capital Account and Financial Account | 197.7 | 174.4 | 23.3 | 164.0 | 170.5 | -6.5 | | Of which: | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 4.6 | -4.6 | 0.0 | 31.9 | -31.9 | | C. Errors & Omissions (-) (A+B) | 0.5 | 0.0 | 0.5 | 0.0 | 0.1 | -0.1 | | P: Preliminary | | Note: Total of sub-components may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2022-2023/957
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