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Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2020-21, are presented in Statements I (BPM6 format) and II (old format).
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India’s current account balance (CAB) recorded a surplus of US$ 19.8 billion (3.9 per cent of GDP) in Q1 of 2020-21 on top of a surplus of US$ 0.6 billion (0.1 per cent of GDP) in the preceding quarter, i.e., Q4 of 2019-20; a deficit of US$ 15.0 billion (2.1 per cent of GDP) was recorded a year ago [i.e. Q1 of 2019-20].
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The surplus in the current account in Q1 of 2020-21 was on account of a sharp contraction in the trade deficit to US$ 10.0 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis.
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Net services receipts remained stable, primarily on the back of net earnings from computer services.
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Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 18.2 billion, a decline of 8.7 per cent from their level a year ago.
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Net outgo from the primary income account, primarily reflecting net overseas investment income payments, increased to US$ 7.7 billion from US$ 6.3 billion a year ago.
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In the financial account, net foreign direct investment recorded outflow of US$ 0.4 billion as against inflows of US$ 14.0 billion in Q1 of 2019-20.
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Net foreign portfolio investment was US$ 0.6 billion as compared with US$ 4.8 billion in Q1 of 2019-20 as net purchases in the equity market were offset by net sales in the debt segment.
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With repayments exceeding fresh disbursals, external commercial borrowings to India recorded net outflow of US$ 1.1 billion in Q1 of 2020-21 as against an inflow of US$ 6.0 billion a year ago.
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Net inflow on account of non-resident deposits increased to US$ 3.0 billion from US$ 2.8 billion in Q1 of 2019-20.
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There was an accretion of US$ 19.8 billion to the foreign exchange reserves (on a BoP basis) as compared with that of US$ 14.0 billion in Q1 of 2019-20 (Table 1).
| (US$ billion) |
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| A. Current Account |
122.4 |
102.6 |
19.8 |
160.7 |
175.7 |
-15.0 |
| 1. Goods |
52.3 |
62.3 |
-10.0 |
82.7 |
129.5 |
-46.8 |
| Of which: |
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| POL |
4.9 |
13.1 |
-8.3 |
11.1 |
35.4 |
-24.2 |
| 2. Services |
46.8 |
26.3 |
20.5 |
52.2 |
32.1 |
20.1 |
| 3. Primary Income |
5.1 |
12.8 |
-7.7 |
5.8 |
12.1 |
-6.3 |
| 4. Secondary Income |
18.2 |
1.2 |
17.0 |
20.0 |
2.0 |
18.0 |
| B. Capital Account and Financial Account |
126.8 |
146.1 |
-19.3 |
138.3 |
123.7 |
14.6 |
| Of which: |
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| Change in Reserves [Increase (-)/Decrease (+)] |
0.0 |
19.8 |
-19.8 |
0.0 |
14.0 |
-14.0 |
| C. Errors & Omissions (-) (A+B) |
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0.5 |
-0.5 |
0.4 |
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0.4 |
| P: Preliminary |
| Note: Total of subcomponents may not tally with aggregate due to rounding off. |
Chief General Manager
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