Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2023-24, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q1:2023-24 -
India’s current account deficit (CAD) narrowed to US$ 9.2 billion (1.1 per cent of GDP) in Q1:2023-24 from US$ 17.9 billion (2.1 per cent of GDP) in Q1:2022-23 but it was higher than US$ 1.3 billion (0.2 per cent of GDP) in the preceding quarter.1 -
The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit coupled with a lower surplus in net services and decline in private transfer receipts. -
Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services, though remained higher on a year-on-year (y-o-y) basis. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, moderated to US$ 27.1 billion in Q1:2023-24 from US$ 28.6 billion in Q4:2022-23 but witnessed an increase on a y-o-y basis. -
Net outgo on the income account, primarily reflecting payments of investment income, declined to US$ 10.6 billion in Q1:2023-24 from US$ 12.6 billion in Q4:2022-23, though higher than a year ago. -
In the financial account, net foreign direct investment decreased to US$ 5.1 billion from US$ 13.4 billion a year ago. -
Net foreign portfolio investment recorded inflows of US$ 15.7 billion as against net outflows of US$ 14.6 billion in Q1:2022-23. -
Net external commercial borrowings to India recorded an inflow of US$ 5.6 billion in Q1:2023-24 as against an outflow of US$ 2.9 billion a year ago. -
Non-resident deposits recorded net inflows of US$ 2.2 billion as compared with US$ 0.3 billion in Q1:2022-23. -
There was an accretion of US$ 24.4 billion to the foreign exchange reserves (on a BoP basis) in Q1:2023-24 as compared with US$ 4.6 billion in Q1:2022-23 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | April-June 2023 P | April-June 2022 | | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 221.4 | 230.6 | -9.2 | 231.0 | 249.0 | -17.9 | | 1. Goods | 105.0 | 161.6 | -56.6 | 122.8 | 185.9 | -63.1 | | Of which: | | | | | | | | POL | 19.1 | 43.3 | -24.3 | 26.9 | 53.2 | -26.3 | | 2. Services | 80.6 | 45.4 | 35.1 | 76.1 | 45.0 | 31.1 | | 3. Primary Income | 8.7 | 19.3 | -10.6 | 6.5 | 15.3 | -8.9 | | 4. Secondary Income | 27.1 | 4.2 | 22.9 | 25.6 | 2.8 | 22.9 | | B. Capital Account and Financial Account | 181.8 | 171.9 | 9.9 | 192.8 | 175.4 | 17.4 | | Of which: | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 24.4 | -24.4 | 0.0 | 4.6 | -4.6 | | C. Errors & Omissions (-) (A+B) | 0.0 | 0.7 | -0.7 | 0.5 | 0.0 | 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: 2023-2024/1008
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