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 | |