Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2018-19, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q4 of 2018-19 -
India’s current account deficit (CAD) at US$ 4.6 billion (0.7 per cent of GDP) in Q4 of 2018-19 narrowed from US$ 13.0 billion (1.8 per cent of GDP) in Q4 of 2017-18 and US$ 17.7 billion (2.7 per cent of GDP) in the preceding quarter. -
The contraction of the CAD on a year-on-year (y-o-y) basis was primarily on account of a lower trade deficit at US$ 35.2 billion as compared with US$ 41.6 billion a year ago. -
Net services receipts increased by 5.8 per cent on a y-o-y basis mainly on the back of a rise in net earnings from telecommunications, computer and information services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, at US$ 17.9 billion declined by 0.9 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 6.4 billion in Q4 of 2018-19 remained at the same level as in Q4 of 2017-18. -
Foreign portfolio investment recorded net inflow of US$ 9.4 billion in Q4 of 2018-19 – as compared with US$ 2.3 billion in Q4 a year ago – on account of net purchases in both debt and equity market. -
Net inflow on account of external commercial borrowings to India increased to US$ 7.2 billion in Q4 of 2018-19 from US$ 1.0 billion a year ago. -
In Q4 of 2018-19, there was an accretion of US$ 14.2 billion to the foreign exchange reserves (on BoP basis) as compared with US$ 13.2 billion in Q4 of 2017-18 (Table 1). BoP during 2018-19 -
The CAD increased to 2.1 per cent of GDP in 2018-19 from 1.8 per cent in 2017-18 on the back of widening of the trade deficit. -
India’s trade deficit increased to US$ 180.3 billion in 2018-19 from US$ 160.0 billion in 2017-18. -
Net invisible receipts were higher in 2018-19 mainly due to increase in net services earnings and private transfer receipts. -
Net FDI inflows at US$ 30.7 billion in 2018-19 were marginally higher than US$ 30.3 billion in 2017-18. -
Portfolio investment recorded a net outflow of US$ 2.4 billion in 2018-19 as against an inflow of US$ 22.1 billion a year ago. -
In 2018-19, there was a depletion of US$ 3.3 billion of the foreign exchange reserves (on a BoP basis). Yogesh Dayal
Chief General Manager Press Release: 2018-2019/3075
| Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | January-March 2019 P | January-March 2018 | 2018-19 P | 2017-18 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 165.2 | 169.8 | -4.6 | 156.7 | 169.7 | -13.0 | 643.7 | 700.9 | -57.2 | 592.4 | 641.0 | -48.7 | | 1. Goods | 87.4 | 122.6 | -35.2 | 82.2 | 123.8 | -41.6 | 337.2 | 517.5 | -180.3 | 309.0 | 469.0 | -160.0 | | Of which: | | | | | | | | | | | | | | POL | 9.8 | 32.4 | -22.6 | 10.6 | 33.0 | -22.4 | 46.5 | 140.8 | -94.3 | 37.4 | 108.6 | -71.2 | | 2. Services | 54.6 | 33.3 | 21.3 | 51.6 | 31.4 | 20.2 | 208.0 | 126.1 | 81.9 | 195.1 | 117.5 | 77.6 | | 3. Primary Income | 5.2 | 12.1 | -6.9 | 4.8 | 12.6 | -7.8 | 21.8 | 50.7 | -28.9 | 18.9 | 47.5 | -28.7 | | 4. Secondary Income | 18.0 | 1.8 | 16.2 | 18.1 | 1.9 | 16.2 | 76.6 | 6.6 | 70.0 | 69.4 | 6.9 | 62.5 | | B. Capital Account and Financial Account | 159.0 | 153.9 | 5.1 | 171.5 | 159.7 | 11.8 | 560.0 | 502.3 | 57.7 | 643.6 | 595.9 | 47.8 | | Of which: | | | | | | | | | | | | | | Change in Reserves [(Increase (-)/Decrease (+)] | | 14.2 | -14.2 | | 13.2 | -13.2 | 17.5 | 14.2 | 3.3 | | 43.6 | -43.6 | | C. Errors & Omissions (-) (A+B) | | 0.4 | -0.4 | 1.3 | | 1.3 | | 0.5 | -0.5 | 0.9 | | 0.9 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | | |