Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2022-23, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q2:2022-23 -
India’s current account balance recorded a deficit of US$ 36.4 billion (4.4 per cent of GDP) in Q2:2022-23, up from US$ 18.2 billion (2.2 per cent of GDP)1 in Q1:2022-23 and a deficit of US$ 9.7 billion (1.3 per cent of GDP) a year ago [i.e., Q2:2021-22]2. -
Underlying the current account deficit in Q2:2022-23 was the widening of the merchandise trade deficit to US$ 83.5 billion from US$ 63.0 billion in Q1:2022-23 and an increase in net outgo under investment income. -
Services exports reported a growth of 30.2 per cent on a year-on-year (y-o-y) basis on the back of rising exports of software, business and travel services. Net services receipts increased both sequentially and on a y-o-y basis. -
Net outgo from the primary income account, mainly reflecting payments of investment income, increased to US$ 12.0 billion from US$ 9.8 billion a year ago. -
Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 27.4 billion, an increase of 29.7 per cent from their level a year ago. -
In the financial account, net foreign direct investment decreased to US$ 6.4 billion from US$ 8.7 billion a year ago. -
Net foreign portfolio investment recorded inflows of US$ 6.5 billion, up from US$ 3.9 billion during Q2:2021-22. -
Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in Q2:2022-23 as against an inflow of US$ 4.3 billion a year ago. -
Non-resident deposits recorded net inflows of US$ 2.5 billion as against net outflows of US$ 0.8 billion in Q2:2021-22. -
There was a depletion of foreign exchange reserves (on a BoP basis) to the tune of US$ 30.4 billion in Q2:2022-23 as against an accretion of US$ 31.2 billion in Q2:2021-22 (Table 1). BoP during April-September 2022 (H1:2022-23) -
India recorded a current account deficit of 3.3 per cent of GDP in H1:2022-23 on the back of a sharp increase in the merchandise trade deficit, as compared with 0.2 per cent in H1:2021-22. -
Net invisible receipts were higher in H1:2022-23 on a y-o-y basis on account of higher net receipts of services and private transfers. -
Net FDI inflows at US$ 20.0 billion in H1:2022-23 were comparable with US$ 20.3 billion in H1:2021-22. Portfolio investment recorded a net outflow of US$ 8.1 billion in H1:2022-23 as against an inflow of US$ 4.3 billion a year ago. -
In H1:2022-23, there was a depletion of US$ 25.8 billion to the foreign exchange reserves (on a BoP basis). | Table 1: Major Items of India's Balance of Payments | | (US$ Billion) | | | July-September 2022 P | July-September 2021 | April-September 2022 P | April-September 2021 | | | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | Credit | Debit | Net | | A. Current Account | 225.2 | 261.6 | -36.4 | 194.3 | 204.0 | -9.7 | 456.0 | 510.6 | -54.5 | 374.4 | 377.5 | -3.1 | | 1. Goods | 112.0 | 195.5 | -83.5 | 104.8 | 149.3 | -44.5 | 234.8 | 381.4 | -146.6 | 202.2 | 277.4 | -75.2 | | Of which: | | | | | | | | | | | | | | POL | 24.0 | 59.2 | -35.2 | 15.7 | 38.6 | -22.9 | 51.0 | 112.7 | -61.7 | 28.6 | 69.5 | -41.0 | | 2. Services | 80.0 | 45.6 | 34.4 | 61.4 | 35.8 | 25.6 | 156.1 | 90.6 | 65.5 | 117.6 | 66.2 | 51.4 | | 3. Primary Income | 5.8 | 17.8 | -12.0 | 6.9 | 16.7 | -9.8 | 12.0 | 33.2 | -21.1 | 12.5 | 29.8 | -17.3 | | 4. Secondary Income | 27.5 | 2.7 | 24.8 | 21.2 | 2.1 | 19.0 | 53.1 | 5.5 | 47.6 | 42.1 | 4.0 | 38.0 | | B. Capital Account and Financial Account | 183.6 | 146.4 | 37.3 | 209.8 | 201.4 | 8.4 | 376.3 | 321.6 | 54.8 | 373.9 | 372.0 | 1.9 | | Of which: | | | | | | | | | | | | | | Change in Reserves [Increase (-)/Decrease (+)] | 30.4 | 0 | 30.4 | 0.0 | 31.2 | -31.2 | 30.4 | 4.6 | 25.8 | 0.0 | 63.1 | -63.1 | | C. Errors & Omissions (-) (A+B) | 0.0 | 0.9 | -0.9 | 1.3 | 0.0 | 1.3 | 0.7 | 0.9 | -0.2 | 1.3 | 0.1 | 1.2 | | P: Preliminary | | Note: Total of subcomponents may not tally with aggregate due to rounding off. | (Yogesh Dayal)
Chief General Manager Press Release: 2022-2023/1453
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