Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4) i.e., January-March 2016-17 are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q4 of 2016-17 -
India’s current account deficit (CAD) at US$ 3.4 billion (0.6 per cent of GDP) in Q4 of 2016-17 was higher than US$ 0.3 billion (0.1 per cent of GDP) in Q4 of 2015-16 but narrowed from US$ 8.0 billion (1.4 per cent of GDP) in the preceding quarter. -
The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit (US$ 29.7 billion) brought about by a larger increase in merchandise imports relative to exports. -
Net services receipts increased on a y-o-y basis on the back of a rise in net earnings from travel, transport, construction and other business services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, at US$ 15.7 billion remained almost at the same level as in the preceding year. -
In the financial account, net foreign direct investment at US$ 5.0 billion in Q4 of 2016-17 moderated from its level a year ago. -
Net portfolio investment, however, recorded substantial inflow of US$ 10.8 billion in Q4 of 2016-17 in both equity and debt segment, as against net outflow of US$ 1.5 billion in Q4 last year. -
Net receipts on account of non-resident deposits amounted to US$ 2.7 billion in Q4 of 2016-17, lower than US$ 4.4 billion a year ago. -
In Q4 of 2016-17, there was an accretion of foreign exchange reserves (on BoP basis) to the tune of US$ 7.3 billion as compared with an increase of US$ 3.3 billion in Q4 of last year (Table 1). BoP during 2016-17 -
On a cumulative basis, the CAD narrowed to 0.7 per cent of GDP in 2016-17 from 1.1 per cent in 2015-16 on the back of the contraction in the trade deficit. -
India’s trade deficit narrowed to US$ 112.4 billion in 2016-17 from US$ 130.1 billion in 2015-16. -
Net invisible receipts were lower, mainly due to moderation in both software exports and net private transfer receipts, and higher outgo on account of primary income (profit, interest and dividends). -
Gross FDI inflows to India in 2016-17 at US$ 60.2 billion increased significantly from US$ 55.6 billion in 2015-16. -
Net FDI inflows (i.e., net of outward FDI) in 2016-17 at US$ 35.6 billion moderated marginally from US$ 36.0 billion in 2015-16. -
Portfolio investment recorded a net inflow of US$ 7.6 billion in 2016-17 as against an outflow of US$ 4.5 billion a year ago. -
In 2016-17, there was an accretion of US$ 21.6 billion to the foreign exchange reserves as compared with US$ 17.9 billion in 2015-16. | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | January-March 2017 P | January-March 2016 | 2016-17 P | 2015-16 | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 138.3 | 141.7 | -3.4 | 124.7 | 125.0 | -0.3 | 521.1 | 536.3 | -15.2 | 501.4 | 523.5 | -22.1 | | 1. Goods | 77.4 | 107.1 | -29.7 | 65.8 | 90.6 | -24.8 | 280.1 | 392.6 | -112.4 | 266.4 | 396.4 | -130.1 | | Of which: | | | | | | | | | | | | | | POL | 9.0 | 25.6 | -16.6 | 6.2 | 14.7 | -8.5 | 31.5 | 86.8 | -55.3 | 30.6 | 82.9 | -52.4 | | 2. Services | 40.7 | 23.1 | 17.6 | 39.4 | 23.3 | 16.1 | 163.1 | 95.7 | 67.5 | 154.3 | 84.6 | 69.7 | | 3. Primary Income | 4.5 | 10.0 | -5.6 | 3.7 | 10.3 | -6.6 | 16.3 | 42.6 | -26.3 | 14.7 | 39.1 | -24.4 | | 4. Secondary Income | 15.7 | 1.5 | 14.2 | 15.7 | 0.7 | 15.0 | 61.5 | 5.5 | 56.0 | 66.0 | 3.3 | 62.7 | | B. Capital Account and Financial Account | 145.1 | 142.1 | 3.1 | 127.3 | 127.2 | 0.2 | 551.9 | 537.1 | 14.9 | 510.9 | 487.8 | 23.2 | | Of which: | | | | | | | | | | | | | | Change in Reserve (Increase (-)/Decrease (+)) | 0.0 | 7.3 | -7.3 | 0.0 | 3.3 | -3.3 | 1.2 | 22.8 | -21.6 | 0.9 | 18.8 | -17.9 | | C. Errors & Omissions (-) (A+B) | 0.4 | | 0.4 | 0.2 | | 0.2 | 0.4 | | 0.4 | | 1.1 | -1.1 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | Jose J. Kattoor
Chief General Manager Press Release: 2016-2017/3388 | |