Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2022-23, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q4:2022-23 -
India’s current account deficit (CAD) decreased to US$ 1.3 billion (0.2 per cent of GDP) in Q4:2022-23 from US$ 16.8 billion (2.0 per cent of GDP) in Q3:2022-231, and US$ 13.4 billion (1.6 per cent of GDP) a year ago [i.e., Q4:2021-22]2. -
The sequential decline in CAD in Q4:2022-23 was mainly on account of a moderation in the trade deficit to US$ 52.6 billion in Q4:2022-23 from US$ 71.3 billion in Q3:2022-23, coupled with robust services exports. -
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 services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to US$ 28.6 billion, up by 20.8 per cent from their level a year ago. -
Net outgo on the primary income account, largely reflecting net income payments on foreign investment, increased on a year-on-year basis, while showing a marginal decline sequentially. -
In the financial account, net foreign direct investment (FDI) at US$ 6.4 billion was higher than US$ 2.0 billion in Q3:2022-23, although lower than a year ago (US$ 13.8 billion). -
Net foreign portfolio investment (FPI) recorded an outflow of US$ 1.7 billion – driven by the equity segment, as compared with an outflow of US$ 15.2 billion during the corresponding period a year ago. -
Net external commercial borrowings (ECBs) to India recorded an inflow of US$ 1.7 billion, as against an outflow of US$ 2.5 billion during Q3:2022-23 and an inflow of US$ 3.3 billion in Q4:2021-22. -
There was an accretion to the foreign exchange reserves (on a BoP basis) to the tune of US$ 5.6 billion as against a depletion of US$ 16.0 billion in Q4:2021-22 (Table 1). BoP during 2022-23 -
The current account balance recorded a deficit of 2.0 per cent of GDP in 2022-23 as compared with a deficit of 1.2 per cent in 2021-22 as the trade deficit widened to US$ 265.3 billion from US$ 189.5 billion a year ago. -
Net invisible receipts were higher in 2022-23 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$ 28.0 billion in 2022-23 were lower than US$ 38.6 billion in 2021-22. -
Net FPI recorded an outflow of US$ 5.2 billion in 2022-23 as compared with an outflow of US$ 16.8 billion a year ago. -
Net ECBs to India recorded an outflow of US$ 4.1 billion in 2022-23 as against an inflow of US$ 7.4 billion in 2021-22. -
In 2022-23, there was a depletion of US$ 9.1 billion of the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | January-March 2023 P | January-March 2022 | 2022-23 P | 2021-22 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 238.0 | 239.3 | -1.3 | 218.8 | 232.2 | -13.4 | 921.9 | 988.8 | -67.0 | 798.7 | 837.4 | -38.7 | | 1. Goods | 115.8 | 168.4 | -52.6 | 118.0 | 172.5 | -54.5 | 456.1 | 721.4 | -265.3 | 429.2 | 618.6 | -189.5 | | Of which: | | | | | | | | | | | | | | POL | 23.8 | 50.8 | -27.0 | 21.3 | 49.3 | -28.0 | 97.4 | 209.4 | -112.0 | 67.5 | 161.8 | -94.3 | | 2. Services | 85.8 | 46.8 | 39.1 | 69.9 | 41.6 | 28.3 | 325.3 | 182.0 | 143.3 | 254.5 | 147.0 | 107.5 | | 3. Primary Income | 7.7 | 20.3 | -12.6 | 7.2 | 15.6 | -8.4 | 27.8 | 73.8 | -45.9 | 25.8 | 63.0 | -37.3 | | 4. Secondary Income | 28.6 | 3.9 | 24.8 | 23.7 | 2.6 | 21.2 | 112.6 | 11.7 | 100.9 | 89.3 | 8.8 | 80.5 | | B. Capital Account and Financial Account | 153.4 | 152.5 | 0.9 | 182.1 | 167.8 | 14.3 | 702.9 | 634.9 | 68.0 | 777.4 | 739.2 | 38.2 | | Of which: | | | | | | | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | | 5.6 | -5.6 | 16.0 | | 16.0 | 30.4 | 21.2 | 9.1 | 16.0 | 63.5 | -47.5 | | C. Errors & Omissions (-) (A+B) | 0.4 | | 0.4 | | 0.9 | -0.9 | 0.9 | 1.9 | -1.0 | 1.4 | 1.0 | 0.5 | | P: Preliminary. | | Note: Total of sub-components may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2023-2024/483
1 The CAD for Q2:2022-23 has been revised upwards to 3.8 per cent from 3.7 per cent earlier due to a downward revision in GDP data by the National Statistical Office (NSO). The CAD for Q3:2022-23 has been revised downwards from US$ 18.2 billion (2.2 per cent of GDP) to US$ 16.8 billion (2.0 per cent of GDP) due to downward adjustment in Customs data. 2 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53906. For longer time series data, please see: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics External Sector › International Trade › Quarterly/Yearly. | |