Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2021-22, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q1:2021-22 -
India’s current account balance recorded a surplus of US$ 6.5 billion (0.9 per cent of GDP) in Q1:2021-22 as against a deficit of US$ 8.1 billion (1.0 per cent of GDP) in Q4:2020-21 and a surplus of US$ 19.1 billion (3.7 per cent of GDP) a year ago [i.e. Q1:2020-21]. -
The surplus in the current account in Q1:2021-22 was primarily on account of contraction in the trade deficit to US$ 30.7 billion from US$ 41.7 billion in the preceding quarter, and an increase in net services receipts. -
Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of robust performance of net exports of computer and business services. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 20.9 billion, an increase of 14.8 per cent from their level a year ago. -
Net outgo from the primary income account, mainly reflecting net overseas investment income payments, decreased sequentially as well as on a y-o-y basis. -
In the financial account, net foreign direct investment recorded inflow of US$ 11.9 billion as against outflow of US$ 0.5 billion in Q1:2020-21. -
Net foreign portfolio investment was US$ 0.4 billion as compared with US$ 0.6 billion in Q1:2020-21. -
Net external commercial borrowings to India recorded inflow of US$ 0.5 billion in Q1:2021-22 as against an outflow of US$ 0.6 billion a year ago. -
Net inflow on account of non-resident deposits decreased to US$ 2.5 billion from US$ 3.0 billion in Q1:2020-21. -
There was an accretion of US$ 31.9 billion to the foreign exchange reserves (on a BoP basis) as compared with that of US$ 19.8 billion in Q1:2020-21 (Table 1). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | April-June 2021 P | April-June 2020 | | | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 180.0 | 173.5 | 6.5 | 122.4 | 103.3 | 19.1 | | 1. Goods | 97.4 | 128.1 | -30.7 | 52.2 | 63.2 | -11.0 | | Of which: | | | | | | | | POL | 13.0 | 31.0 | -18.0 | 4.8 | 13.2 | -8.3 | | 2. Services | 56.2 | 30.4 | 25.8 | 47.0 | 26.2 | 20.8 | | 3. Primary Income | 5.4 | 13.0 | -7.5 | 5.0 | 12.7 | -7.7 | | 4. Secondary Income | 20.9 | 1.9 | 19.0 | 18.2 | 1.2 | 17.0 | | B. Capital Account and Financial Account | 155.3 | 161.4 | -6.1 | 120.2 | 138.6 | -18.5 | | Of which: | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 0.0 | 31.9 | -31.9 | 0.0 | 19.8 | -19.8 | | C. Errors & Omissions (-) (A+B) | | 0.4 | -0.4 | | 0.6 | -0.6 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2021-2022/960 | |