Preliminary data on India’s balance of payments (BoP) for the third quarter (Q3) i.e., October-December 2016-17 are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q3 of 2016-17 -
India’s current account deficit (CAD) at US$ 7.9 billion (1.4 per cent of GDP) in Q3 of 2016-17 was higher than US$ 7.1 billion (1.4 per cent of GDP) in Q3 of 2015-16 and US$ 3.4 billion (0.6 per cent of GDP) in the preceding quarter. -
Despite a slightly lower trade deficit on a year-on-year (y-o-y) basis, the CAD widened primarily on account of a decline in net invisibles receipts. -
Net services receipts moderated on a y-o-y basis, primarily owing to the fall in earnings from software, financial services and charges for intellectual property rights. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 15.2 billion, having declined by 3.8 per cent from their level a year ago. -
In the financial account, net foreign direct investment at US$ 9.8 billion in Q3 of 2016-17 was marginally lower than its level a year ago. -
There has been net outflow of portfolio investment to the tune of US$ 11.3 billion as against net inflow of US$ 0.6 billion in Q3 of last year; portfolio outflows occurred in both equity and debt segments. -
Reflecting the redemption of FCNR (B) deposits, non-resident Indian (NRI) deposits declined by US$ 18.5 billion in Q3 of 2016-17 as against an inflow of US$ 1.6 billion a year ago. -
In Q3 of 2016-17, foreign exchange reserves (on BoP basis) declined by US$ 1.2 billion as against an increase of US$ 4.1 billion in Q3 of last year (Table 1). BoP during April-December 2016 -
On a cumulative basis, the CAD narrowed to 0.7 per cent of GDP in April-December 2016 from 1.4 per cent in the corresponding period of 2015-16 on the back of the contraction in the trade deficit. -
India’s trade deficit narrowed to US$ 82.8 billion in April-December 2016 from US$ 105.3 billion in April-December 2015. -
Net invisible receipts were lower, mainly due to moderation in software exports and net private transfers and higher outgo on account of primary income (profit, interest and dividends). -
Net FDI inflows during April-December 2016 (US$ 30.6 billion) rose by 12.3 per cent over the level during the corresponding period of 2015-16. -
Portfolio investment recorded a net outflow of US$ 3.2 billion during April-December 2016 as compared with US$ 3.0 billion a year ago. -
In April-December 2016, there was an accretion of US$ 14.2 billion to the foreign exchange reserves. | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | October-December 2016 P | October-December 2015 | April-December 2016-17 P | April-December 2015-16 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 130.1 | 138.0 | -7.9 | 122.6 | 129.7 | -7.1 | 383.0 | 394.6 | -11.6 | 376.7 | 398.5 | -21.8 | | 1. Goods | 68.8 | 102.0 | -33.3 | 64.9 | 98.9 | -34.0 | 202.8 | 285.5 | -82.8 | 200.5 | 305.9 | -105.3 | | Of which: | | | | | | | | | | | | | | POL | 8.2 | 21.7 | -13.5 | 7.4 | 20.0 | -12.6 | 22.6 | 61.2 | -38.6 | 24.4 | 68.3 | -43.9 | | 2. Services | 42.1 | 24.5 | 17.6 | 37.9 | 19.9 | 18.0 | 122.4 | 72.8 | 49.7 | 114.9 | 61.3 | 53.6 | | 3. Primary Income | 4.0 | 10.1 | -6.2 | 3.8 | 10.2 | -6.4 | 12.0 | 32.3 | -20.3 | 11.0 | 28.8 | -17.8 | | 4. Secondary Income | 15.3 | 1.4 | 13.9 | 15.9 | 0.7 | 15.3 | 45.8 | 4.0 | 41.8 | 50.3 | 2.6 | 47.7 | | B. Capital Account and Financial Account | 138.7 | 131.3 | 7.4 | 115.1 | 108.3 | 6.8 | 406.8 | 395.1 | 11.8 | 383.6 | 360.6 | 23.0 | | Of which: | | | | | | | | | | | | | | Change in Reserve (Increase (-)/Decrease (+)) | 1.2 | | 1.2 | | 4.1 | -4.1 | 1.2 | 15.5 | -14.2 | 0.9 | 15.5 | -14.6 | | C. Errors & Omissions (-) (A+B) | 0.5 | | 0.5 | 0.3 | | 0.3 | | 0.2 | -0.2 | | 1.2 | -1.2 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | Jose J. Kattoor
Chief General Manager Press Release: 2016-2017/2542 | |