Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3), i.e., October-December 2019-20, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q3 of 2019-20 -
India’s current account deficit (CAD) narrowed sharply to US$ 1.4 billion (0.2 per cent of GDP) in Q3 of 2019-20 from US$ 17.7 billion (2.7 per cent of GDP) in Q3 of 2018-19 and US$ 6.5 billion (0.9 per cent of GDP) in the preceding quarter, i.e., Q2 of 2019-20. -
The contraction in the CAD was primarily on account of a lower trade deficit at US$ 34.6 billion and a rise in net services receipts at US$ 21.9 billion as compared with the corresponding period of last year. -
Net services receipts increased on the back of a rise in net earnings from computer, travel and financial services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to US$ 20.6 billion, up by 9.0 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 10.0 billion was higher than US$ 7.3 billion in Q3 of 2018-19. -
Foreign portfolio investment recorded net inflow of US$ 7.8 billion – as against an outflow of US$ 2.1 billion in Q3 of 2018-19 – on account of net purchases in both the debt and equity market. -
Net inflow on account of external commercial borrowings to India was US$ 3.2 billion as compared with US$ 2.0 billion in Q3 of 2018-19. -
There was an accretion of US$ 21.6 billion to the foreign exchange reserves (on BoP basis) as against a depletion of US$ 4.3 billion in Q3 of 2018-19 (Table 1). BoP during April-December 2019-20 -
The CAD narrowed to 1.0 per cent of GDP in April-December of 2019-20 from 2.6 per cent in April-December of 2018-19 on the back of a reduction in the trade deficit which shrank to US$ 118.9 billion in April-December 2019-20 from US$ 145.1 billion in April-December of 2018-19. -
Net invisible receipts were higher in April-December of 2019-20, mainly due to increase in net services earnings and private transfer receipts. -
Net FDI inflows at US$ 32.1 billion in April-December of 2019-20 were higher than US$ 24.3 billion in April-December of 2018-19. -
Portfolio investment recorded a net inflow of US$ 15.1 billion in April-December of 2019-20 as against an outflow of US$ 11.9 billion a year ago. -
In April-December 2019-20, there was an accretion of US$ 40.7 billion of the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | October-December 2019 P | October-December 2018 | April-December 2019-20 P | April-December 2018-19 | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 162.6 | 164.0 | -1.4 | 162.8 | 180.5 | -17.7 | 484.5 | 506.8 | -22.3 | 478.6 | 531.1 | -52.6 | | 1. Goods | 81.2 | 115.9 | -34.6 | 83.1 | 132.4 | -49.3 | 244.0 | 362.9 | -118.9 | 249.9 | 394.9 | -145.1 | | Of which: | | | | | | | | | | | | | | POL | 11.5 | 31.4 | -19.9 | 13.0 | 38.4 | -25.4 | 32.8 | 96.5 | -63.7 | 36.6 | 108.5 | -71.9 | | 2. Services | 55.2 | 33.3 | 21.9 | 55.1 | 33.4 | 21.7 | 159.7 | 97.3 | 62.4 | 153.4 | 92.8 | 60.6 | | 3. Primary Income | 5.6 | 12.9 | -7.4 | 5.7 | 13.2 | -7.6 | 18.2 | 40.7 | -22.5 | 16.6 | 38.6 | -21.9 | | 4. Secondary Income | 20.6 | 1.9 | 18.7 | 19.0 | 1.5 | 17.4 | 62.6 | 5.9 | 56.7 | 58.7 | 4.8 | 53.8 | | B. Capital Account and Financial Account | 151.7 | 150.9 | 0.7 | 127.0 | 109.0 | 18.1 | 430.5 | 408.4 | 22.1 | 401.0 | 348.4 | 52.6 | | Of which: | | | | | | | | | | | | | | Change in Reserves (Increase (-)/Decrease (+)) | 0.0 | 21.6 | -21.6 | 4.3 | 0.0 | 4.3 | 0.0 | 40.7 | -40.7 | 17.5 | 0.0 | 17.5 | | C. Errors & Omissions (-) (A+B) | 0.7 | | 0.7 | | 0.3 | -0.3 | 0.2 | | 0.2 | | 0.1 | -0.1 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2019-2020/2050 | |