Preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2022-23, are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q4:2022-23

• India’s current account deficit (CAD) decreased to US$ 1.3 billion (0.2 per cent of GDP) in Q4:2022-23 from US$ 16.8 billion (2.0 per cent of GDP) in Q3:2022-23¹, and US$ 13.4 billion (1.6 per cent of GDP) a year ago [i.e., Q4:2021-22]².

• The sequential decline in CAD in Q4:2022-23 was mainly on account of a moderation in the trade deficit to US$ 52.6 billion in Q4:2022-23 from US$ 71.3 billion in Q3:2022-23, coupled with robust services exports.

• Net services receipts increased, both sequentially and on a year-on-year (y-o-y) basis, on the back of a rise in net earnings from computer services.

• Private transfer receipts, mainly representing remittances by Indians employed overseas, increased to US$ 28.6 billion, up by 20.8 per cent from their level a year ago.

• Net outgo on the primary income account, largely reflecting net income payments on foreign investment, increased on a year-on-year basis, while showing a marginal decline sequentially.

• In the financial account, net foreign direct investment (FDI) at US$ 6.4 billion was higher than US$ 2.0 billion in Q3:2022-23, although lower than a year ago (US$ 13.8 billion).

• Net foreign portfolio investment (FPI) recorded an outflow of US$ 1.7 billion – driven by the equity segment, as compared with an outflow of US$ 15.2 billion during the corresponding period a year ago.

• Net external commercial borrowings (ECBs) to India recorded an inflow of US$ 1.7 billion, as against an outflow of US$ 2.5 billion during Q3:2022-23 and an inflow of US$ 3.3 billion in Q4:2021-22.

• There was an accretion to the foreign exchange reserves (on a BoP basis) to the tune of US$ 5.6 billion as against a depletion of US$ 16.0 billion in Q4:2021-22 (Table 1).

BoP during 2022-23

• The current account balance recorded a deficit of 2.0 per cent of GDP in 2022-23 as compared with a deficit of 1.2 per cent in 2021-22 as the trade deficit widened to US$ 265.3 billion from US$ 189.5 billion a year ago.

• Net invisible receipts were higher in 2022-23 due to increase in net exports of services and net private transfer receipts, even though net income outgo was higher than a year ago.

• Net FDI inflows at US$ 28.0 billion in 2022-23 were lower than US$ 38.6 billion in 2021-22.

• Net FPI recorded an outflow of US$ 5.2 billion in 2022-23 as compared with an outflow of US$ 16.8 billion a year ago.

• Net ECBs to India recorded an outflow of US$ 4.1 billion in 2022-23 as against an inflow of US$ 7.4 billion in 2021-22.

• In 2022-23, there was a depletion of US$ 9.1 billion of the foreign exchange reserves (on a BoP basis).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/483

¹ The CAD for Q2:2022-23 has been revised upwards to 3.8 per cent from 3.7 per cent earlier due to a downward revision in GDP data by the National Statistical Office (NSO). The CAD for Q3:2022-23 has been revised downwards from US$ 18.2 billion (2.2 per cent of GDP) to US$ 16.8 billion (2.0 per cent of GDP) due to downward adjustment in Customs data.

² /en/web/rbi/-/press-releases/developments-in-india-s-balance-of-payments-during-the-fourth-quarter-january-march-of-2021-22-53906. For longer time series data, please see: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics External Sector › International Trade › Quarterly/Yearly.