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Developments in India’s Balance of Payments during the First Quarter (April-June) of 2023-24

Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2023-24, are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q1:2023-24

  1. India’s current account deficit (CAD) narrowed to US$ 9.2 billion (1.1 per cent of GDP) in Q1:2023-24 from US$ 17.9 billion (2.1 per cent of GDP) in Q1:2022-23 but it was higher than US$ 1.3 billion (0.2 per cent of GDP) in the preceding quarter.1

  2. The widening of CAD on a quarter-on-quarter basis was primarily on account of a higher trade deficit coupled with a lower surplus in net services and decline in private transfer receipts.

  3. Net services receipts decreased sequentially, primarily due to a decline in exports of computer, travel and business services, though remained higher on a year-on-year (y-o-y) basis.

  4. Private transfer receipts, mainly representing remittances by Indians employed overseas, moderated to US$ 27.1 billion in Q1:2023-24 from US$ 28.6 billion in Q4:2022-23 but witnessed an increase on a y-o-y basis.

  5. Net outgo on the income account, primarily reflecting payments of investment income, declined to US$ 10.6 billion in Q1:2023-24 from US$ 12.6 billion in Q4:2022-23, though higher than a year ago.

  6. In the financial account, net foreign direct investment decreased to US$ 5.1 billion from US$ 13.4 billion a year ago.

  7. Net foreign portfolio investment recorded inflows of US$ 15.7 billion as against net outflows of US$ 14.6 billion in Q1:2022-23.

  8. Net external commercial borrowings to India recorded an inflow of US$ 5.6 billion in Q1:2023-24 as against an outflow of US$ 2.9 billion a year ago.

  9. Non-resident deposits recorded net inflows of US$ 2.2 billion as compared with US$ 0.3 billion in Q1:2022-23.

  10. There was an accretion of US$ 24.4 billion to the foreign exchange reserves (on a BoP basis) in Q1:2023-24 as compared with US$ 4.6 billion in Q1:2022-23 (Table 1).

Table 1: Major Items of India's Balance of Payments
(US$ billion)
  April-June 2023 P April-June 2022
  Credit Debit Net Credit Debit Net
A. Current Account 221.4 230.6 -9.2 231.0 249.0 -17.9
1. Goods 105.0 161.6 -56.6 122.8 185.9 -63.1
   Of which:            
      POL 19.1 43.3 -24.3 26.9 53.2 -26.3
2. Services 80.6 45.4 35.1 76.1 45.0 31.1
3. Primary Income 8.7 19.3 -10.6 6.5 15.3 -8.9
4. Secondary Income 27.1 4.2 22.9 25.6 2.8 22.9
B. Capital Account and Financial Account 181.8 171.9 9.9 192.8 175.4 17.4
   Of which:            
Change in Reserves [Increase (-)/Decrease (+)] 0.0 24.4 -24.4 0.0 4.6 -4.6
C. Errors & Omissions (-) (A+B) 0.0 0.7 -0.7 0.5 0.0 0.5
P: Preliminary.
Note: Total of sub-components may not tally with aggregate due to rounding off.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1008


1 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55933#F1 . For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector › International Trade › Quarterly/Yearly.

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