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).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/960