RbiSearchHeader

Press escape key to go back

Past Searches

Theme
Theme
Text Size
Text Size
S1

Press Releases Marquee

RBI Announcements
RBI Announcements

RbiAnnouncementWeb

RBI Announcements
RBI Announcements

Asset Publisher

81322978

Developments in India’s Balance of Payments during the First Quarter (April-June) of 2020-21

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).

Key Features of India’s BoP in Q1 of 2020-21

  • 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].

  • 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.

  • Net services receipts remained stable, primarily on the back of net earnings from computer services.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • Net inflow on account of non-resident deposits increased to US$ 3.0 billion from US$ 2.8 billion in Q1 of 2019-20.

  • 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).

Table 1: Major Items of India's Balance of Payments
(US$ billion)
  April-June 2020 P April-June 2019
  Credit Debit Net Credit Debit Net
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:            
          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:            
Change in Reserves [Increase (-)/Decrease (+)] 0.0 19.8 -19.8 0.0 14.0 -14.0
C. Errors & Omissions (-) (A+B)   0.5 -0.5 0.4   0.4
P: Preliminary
Note: Total of subcomponents may not tally with aggregate due to rounding off.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2020-2021/410

RbiTtsCommonUtility

PLAYING
LISTEN

Related Assets

RBI-Install-RBI-Content-Global

RbiSocialMediaUtility

Install the RBI mobile application and get quick access to the latest news!

Scan Your QR code to Install our app

RbiWasItHelpfulUtility

Was this page helpful?