Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2020-21, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q1 of 2020-21 -
India’s current account balance (CAB) recorded a surplus of US$ 19.8 billion (3.9 per cent of GDP) in Q1 of 2020-21 on top of a surplus of US$ 0.6 billion (0.1 per cent of GDP) in the preceding quarter, i.e., Q4 of 2019-20; a deficit of US$ 15.0 billion (2.1 per cent of GDP) was recorded a year ago [i.e. Q1 of 2019-20]. -
The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to US$ 10.0 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis. -
Net services receipts remained stable, primarily on the back of net earnings from computer services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 18.2 billion, a decline of 8.7 per cent from their level a year ago. -
Net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to US$ 7.7 billion from US$ 6.3 billion a year ago. -
In the financial account, net foreign direct investment recorded outflow of US$ 0.4 billion as against inflows of US$ 14.0 billion in Q1 of 2019-20. -
Net foreign portfolio investment was US$ 0.6 billion as compared with US$ 4.8 billion in Q1 of 2019-20 as net purchases in the equity market were offset by net sales in the debt segment. -
With repayments exceeding fresh disbursals, external commercial borrowings to India recorded net outflow of US$ 1.1 billion in Q1 of 2020-21 as against an inflow of US$ 6.0 billion a year ago. -
Net inflow on account of non-resident deposits increased to US$ 3.0 billion from US$ 2.8 billion in Q1 of 2019-20. -
There was an accretion of US$ 19.8 billion to the foreign exchange reserves (on a BoP basis) as compared with that of US$ 14.0 billion in Q1 of 2019-20 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ billion) | | | April-June 2020 P | April-June 2019 | | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 122.4 | 102.6 | 19.8 | 160.7 | 175.7 | -15.0 | | 1. Goods | 52.3 | 62.3 | -10.0 | 82.7 | 129.5 | -46.8 | | Of which: | | | | | | | | POL | 4.9 | 13.1 | -8.3 | 11.1 | 35.4 | -24.2 | | 2. Services | 46.8 | 26.3 | 20.5 | 52.2 | 32.1 | 20.1 | | 3. Primary Income | 5.1 | 12.8 | -7.7 | 5.8 | 12.1 | -6.3 | | 4. Secondary Income | 18.2 | 1.2 | 17.0 | 20.0 | 2.0 | 18.0 | | B. Capital Account and Financial Account | 126.8 | 146.1 | -19.3 | 138.3 | 123.7 | 14.6 | | Of which: | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 19.8 | -19.8 | 0.0 | 14.0 | -14.0 | | C. Errors & Omissions (-) (A+B) | | 0.5 | -0.5 | 0.4 | | 0.4 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2020-2021/410 | |