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Date : Sep 30, 2019
Developments in India’s Balance of Payments during the First Quarter (April-June) of 2019-20

Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2019-20, are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q1 of 2019-20

  • India’s current account deficit (CAD) at US$ 14.3 billion (2.0 per cent of GDP) in Q1 of 2019-20 narrowed from US$ 15.8 billion (2.3 per cent of GDP) in Q1 of 2018-19 but was higher than US$ 4.6 billion (0.7 per cent of GDP) in the preceding quarter.

  • The CAD contracted on a year-on-year (y-o-y) basis, primarily on account of higher invisible receipts at US$ 31.9 billion as compared with US$ 29.9 billion a year ago.

  • Net services receipts increased by 7.3 per cent on a y-o-y basis, mainly on the back of a rise in net earnings from travel, financial services and telecommunications, computer and information services.

  • Private transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 19.9 billion, increasing by 6.2 per cent from their level a year ago.

  • In the financial account, net foreign direct investment was US$ 13.9 billion in Q1 of 2019-20 as compared with US$ 9.6 billion in Q1 of 2018-19.

  • Foreign portfolio investment recorded net inflow of US$ 4.8 billion in Q1 of 2019-20 – as against an outflow of US$ 8.1 billion in Q1 of 2018-19 – on account of net purchases in both debt and equity markets.

  • Net inflow on account of external commercial borrowings to India was US$ 6.3 billion in Q1 of 2019-20 as against an outflow of US$ 1.5 billion a year ago.

  • In Q1 of 2019-20, there was an accretion of US$ 14.0 billion to the foreign exchange reserves (on BoP basis) as against a depletion of US$ 11.3 billion in Q1 of 2018-19 (Table 1).

Table 1: Major Items of India's Balance of Payments
(US$ Billion)
  April-June 2019 (P) April-June 2018
  Credit Debit Net Credit Debit Net
A. Current Account 160.7 175.0 -14.3 155.7 171.5 -15.8
1. Goods 82.7 128.9 -46.2 83.4 129.1 -45.8
  Of which:            
         POL 11.6 35.0 -23.4 11.8 34.8 -23.0
2. Services 52.2 32.2 20.0 48.2 29.5 18.7
3. Primary Income 5.8 11.9 -6.1 5.4 11.1 -5.8
4. Secondary Income 20.0 2.0 18.0 18.8 1.7 17.1
B. Capital Account and Financial Account 141.0 127.2 13.9 142.6 126.5 16.1
  Of which:            
Change in Reserves (Increase (-)/Decrease (+))   14.0 -14.0 11.3   11.3
C. Errors & Omissions (-) (A+B) 0.4    0.4   0.3 -0.3
P: Preliminary
Note: Total of subcomponents may not tally with aggregate due to rounding off.

(Yogesh Dayal)    
Chief General Manager

Press Release : 2019-2020/822


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