Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2018-19, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q1 of 2018-19 -
India’s current account deficit (CAD) stood at US$ 15.8 billion (2.4 per cent of GDP) in Q1 of 2018-19 as compared with US$ 15.0 billion (2.5 per cent of GDP) in Q1 of 2017-18. -
The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at US$ 45.7 billion as compared with US$ 41.9 billion a year ago. -
Net services receipts increased by 2.1 per cent on a y-o-y basis mainly on the back of a rise in net earnings from software and financial services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 18.8 billion, increasing by 16.9 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 9.7 billion in Q1 of 2018-19 was higher than US$ 7.1 billion in Q1 of 2017-18. -
Portfolio investment recorded net outflow of US$ 8.1 billion in Q1 of 2018-19 – as compared with an inflow of US$ 12.5 billion in Q1 last year – on account of net sales in both the debt and equity markets. -
Net receipts on account of non-resident deposits amounted to US$ 3.5 billion in Q1 of 2018-19 as compared with US$ 1.2 billion a year ago. -
In Q1 of 2018-19, there was a depletion of US$ 11.3 billion of the foreign exchange reserves (on BoP basis) as against an accretion of US$ 11.4 billion in Q1 of 2017-18 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | April-June 2018 P | April-June 2017 PR | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 155.7 | 171.5 | -15.8 | 139.9 | 154.9 | -15.0 | | 1. Goods | 83.4 | 129.1 | -45.7 | 73.1 | 115.1 | -41.9 | | Of which: | | | | | | | | POL | 11.9 | 34.7 | -22.8 | 7.5 | 22.8 | -15.4 | | 2. Services | 48.2 | 29.5 | 18.7 | 45.9 | 27.6 | 18.3 | | 3. Primary Income | 5.3 | 11.1 | -5.8 | 4.7 | 10.6 | -5.8 | | 4. Secondary Income | 18.8 | 1.7 | 17.1 | 16.1 | 1.6 | 14.5 | | B. Capital Account and Financial Account | 142.4 | 125.9 | 16.6 | 155.7 | 140.2 | 15.5 | | Of which: | | | | | | | | Change in Reserves (Increase (-)/Decrease (+)) | 11.3 | 0.0 | 11.3 | 0.0 | 11.4 | -11.4 | | C. Errors & Omissions (-) (A+B) | | 0.8 | -0.8 | | 0.6 | -0.6 | | P: Preliminary; PR: Partially Revised | | Note: Total of subcomponents may not tally with the aggregate due to rounding off. | Jose J. Kattoor
Chief General Manager Press Release: 2018-2019/576 | |