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).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2022-2023/1453

¹ The current account deficit for Q1:2022-23 has been revised downwards from US$ 23.9 billion (2.8 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.