Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2018-19, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q2 of 2018-19 -
India’s current account deficit (CAD) at US$ 19.1 billion (2.9 per cent of GDP) in Q2 of 2018-19 increased from US$ 6.9 billion (1.1 per cent of GDP) in Q2 of 2017-18 and US$ 15.9 billion (2.4 per cent of GDP) in the preceding quarter. -
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$ 50.0 billion as compared with US$ 32.5 billion a year ago. -
Net services receipts increased by 10.2 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$ 20.9 billion, increasing by 19.8 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 7.9 billion in Q2 of 2018-19 moderated from US$ 12.4 billion in Q2 of 2017-18. -
Portfolio investment recorded net outflow of US$ 1.6 billion in Q2 of 2018-19 – as compared with an inflow of US$ 2.1 billion in Q2 last year – on account of net sales in both the debt and equity markets. -
Net receipts on account of non-resident deposits increased to US$ 3.3 billion in Q2 of 2018-19 from US$ 0.7 billion a year ago. -
In Q2 of 2018-19, there was a depletion of US$ 1.9 billion of the foreign exchange reserves (on BoP basis) as against an accretion of US$ 9.5 billion in Q2 of 2017-18 (Table 1). BoP during April-September 2018 (H1 of 2018-19) -
The CAD increased to 2.7 per cent of GDP in H1 of 2018-19 from 1.8 per cent in H1 of 2017-18 on the back of widening of the trade deficit. -
India’s trade deficit increased to US$ 95.8 billion in H1 of 2018-19 from US$ 74.4 billion in H1 of 2017-18. -
Net invisible receipts were higher in H1 of 2018-19 mainly due to increase in net services earnings and private transfer receipts. -
Net FDI inflows in H1 of 2018-19 moderated to US$ 17.7 billion from US$ 19.6 billion in H1 of 2017-18. -
Portfolio investment recorded a net outflow of US$ 9.8 billion in H1 of 2018-19 as against an inflow of US$ 14.5 billion a year ago. -
In H1 of 2018-19, there was a depletion of US$ 13.2 billion of the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | July-September 2018 P | July-September 2017 | April-September 2018-19P | April-September 2017-18 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 160.0 | 179.1 | -19.1 | 145.5 | 152.4 | -6.9 | 315.7 | 350.7 | -35.0 | 285.4 | 307.3 | -21.9 | | 1. Goods | 83.4 | 133.4 | -50.0 | 76.1 | 108.5 | -32.5 | 166.8 | 262.6 | -95.8 | 149.2 | 223.6 | -74.4 | | Of which: | | | | | | | | | | | | | | POL | 12.1 | 35.2 | -23.1 | 9.0 | 23.7 | -14.6 | 23.5 | 69.9 | -46.5 | 16.5 | 46.5 | -30.0 | | 2. Services | 50.1 | 29.8 | 20.2 | 47.4 | 29.0 | 18.4 | 98.3 | 59.3 | 38.9 | 93.3 | 56.6 | 36.7 | | 3. Primary Income | 5.6 | 14.3 | -8.7 | 4.5 | 13.0 | -8.6 | 11.0 | 25.5 | -14.6 | 9.2 | 23.6 | -14.4 | | 4. Secondary Income | 20.9 | 1.5 | 19.4 | 17.5 | 1.8 | 15.7 | 39.7 | 3.3 | 36.4 | 33.7 | 3.5 | 30.2 | | B. Capital Account and Financial Account | 131.1 | 112.9 | 18.2 | 147.1 | 139.7 | 7.4 | 273.7 | 238.8 | 34.9 | 302.8 | 279.9 | 22.9 | | Of which: | | | | | | | | | | | | | | Change in Reserves (Increase (-)/Decrease (+)) | 1.9 | 0.0 | 1.9 | 0.0 | 9.5 | -9.5 | 13.2 | 0.0 | 13.2 | 0.0 | 20.9 | -20.9 | | C. Errors & Omissions (-) (A+B) | 0.9 | | 0.9 | | 0.4 | -0.4 | 0.1 | | 0.1 | | 1.0 | -1.0 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | Jose J. Kattoor
Chief General Manager Press Release: 2018-2019/1329 | |