Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4) i.e., January-March 2015-16 are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q4 of 2015-16 -
India’s current account deficit (CAD) narrowed sharply to US$ 0.3 billion (0.1 per cent of GDP) in Q4 of 2015-16, significantly lower than US$ 7.1 billion (1.3 per cent of GDP) in Q3 of 2015-16 and marginally lower than US$ 0.7 billion (0.1 per cent of GDP) in Q4 of 2014-15 (Table 1). -
The contraction in CAD was primarily on account of a lower trade deficit (US$ 24.8 billion) than in Q4 of last year (US$ 31.6 billion) and US$ 34.0 billion in the preceding quarter. -
Net services receipts declined on a y-o-y basis largely due to fall in exports of transport, financial services and telecommunication, computer and information services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 15.7 billion, a decline from their level in the preceding quarter as well as from a year ago. -
Net foreign direct investment moderated to US$ 8.8 billion in Q4 of 2015-16 from US$ 9.3 billion in Q4 of 2014-15. -
Portfolio investment recorded a net outflow of US$ 1.5 billion in Q4 of 2015-16 as against a net inflow of US$ 12.5 billion in the corresponding period of last year; primarily reflecting net outflow in the debt segment. -
Non-resident Indian (NRI) deposits, however, increased in Q4 of 2015-16 over their level in Q4 last year as well as the preceding quarter. -
Foreign exchange reserves (on a BoP basis) increased by US$ 3.3 billion in Q4 of 2015-16. BoP during April-March 2015-16 -
The CAD narrowed to 1.1 per cent of GDP in 2015-16 from 1.3 per cent in 2014-15, on the back of contraction in the trade deficit. -
India’s trade deficit narrowed to US$ 130.1 billion in 2015-16 from US$ 144.9 billion in 2014-15. -
Net invisible receipts declined in 2015-16, primarily reflecting moderation in both net services earnings and private transfer receipts. -
Net FDI inflows during 2015-16 (US$ 36.0 billion) rose sharply by 15.3 per cent over the level in 2014-15. -
Portfolio investment, however, recorded a net outflow US$ 4.5 billion in 2015-16 as against a net inflow of US$ 40.9 billion last year. -
In 2015-16, there was an accretion of US$ 17.9 billion to foreign exchange reserves (on a BoP basis) as compared with US$ 61.4 billion in 2014-15. | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | January-March 2016 P | January-March 2015 PR | April-March 2015-16 P | April-March 2014-15 PR | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 124.7 | 125.0 | -0.3 | 134.2 | 134.9 | -0.7 | 501.4 | 523.5 | -22.1 | 558.2 | 585.0 | -26.8 | | 1. Goods | 65.8 | 90.6 | -24.8 | 71.8 | 103.4 | -31.6 | 266.4 | 396.4 | -130.1 | 316.5 | 461.5 | -144.9 | | Of which: | | | | | | | | | | | | | | POL | 6.1 | 14.6 | -8.5 | 8.2 | 21.8 | -13.5 | 30.4 | 82.9 | -52.4 | 56.8 | 138.3 | -81.5 | | 2. Services | 39.4 | 23.3 | 16.1 | 41.4 | 21.3 | 20.0 | 154.3 | 84.6 | 69.7 | 158.1 | 81.6 | 76.5 | | 3. Primary Income | 3.7 | 10.3 | -6.6 | 3.5 | 9.1 | -5.6 | 14.7 | 39.1 | -24.4 | 13.4 | 37.5 | -24.1 | | 4. Secondary Income | 15.7 | 0.7 | 15.0 | 17.5 | 1.1 | 16.4 | 66.0 | 3.3 | 62.7 | 70.1 | 4.4 | 65.8 | | B. Capital Account and Financial Account | 127.3 | 127.2 | 0.2 | 149.4 | 149.5 | -0.1 | 510.9 | 487.8 | 23.2 | 550.9 | 523.1 | 27.8 | | Of which: | | | | | | | | | | | | | | Change in Reserve (Increase (-)/Decrease (+)) | 0.0 | 3.3 | -3.3 | 0.0 | 30.1 | -30.1 | 0.9 | 18.8 | -17.9 | 0.0 | 61.4 | -61.4 | | C. Errors & Omissions (-) (A+B) | 0.2 | 0.0 | 0.2 | 0.8 | 0.0 | 0.8 | 0.4 | 1.5 | -1.1 | 1.1 | 2.1 | -1.0 | | P: Preliminary PR: Partially Revised | | | | | | | Note: Total of sub-components may not tally with aggregate due to rounding off. | Ajit Prasad
Assistant Adviser Press Release : 2015-2016/2925 | |