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83162009

Developments in India’s Balance of Payments during July-September 2009*

The data on India’s Balance of Payments (BoP) are compiled and published by the Reserve Bank on a quarterly basis with a lag of one quarter. Accordingly, the preliminary data on India’s BoP for the Second Quarter (Q2) i.e., July-September 2009 of the financial year 2009-10 along with the partially revised data for the first quarter (Q1) i.e., April-June 2009 and revised data for 2007-08 and 2008-09 were released by the Reserve Bank on December 31, 2009.

As per the revision policy, the data on India’s BoP for the previous two years are revised only once in a year when the data of the July-September quarter are published at end-December (i.e., December 31). Accordingly, the data for the financial years 2007-08 and 2008-09 have been revised now. The data for 2007-08 is now final and is frozen, except in extraordinary circumstances in the event of methodological changes in respect of data collection and compilation procedures and/or significant changes indicated by data sources that could cause structural shift in the data series. The data for the financial year 2008-09 is now partially revised. This will be finalized and frozen in December 2010. Data revisions for the previous quarters of the same financial year are also undertaken while compiling data for the current quarter. Accordingly, the revisions of the data on BoP for the first quarter of 2009-10 have been undertaken.

The developments in India’s BoP for 2009-10 (April-September) are presented here below.

1.  Major Highlights

(i) Growth in exports and imports continued their declining trend during Q2 of 2009-10.

(ii) Trade deficit, however, was lower reflecting larger fall in imports, especially oil imports, on account of lower oil prices as compared to last year.

(iii) Private transfer receipts continued to be sustained through Q2 of 2009-10. Software services exports, however, were lower.

(iv) Despite lower trade deficit, current account deficit at US$ 12.6 billion in Q2 of 2009-10 was almost at the same level as last year, mainly on account of lower net invisibles surplus. During April-September 2009, the current account deficit stood higher at US$ 18.6 billion.

(v) Net capital flows were higher during April-September 2009 mainly driven by foreign investment inflows, particularly reflecting the turnaround in FII inflows. NRI deposits also witnessed higher inflows.

(vi) Higher capital inflows along with the allocations of SDRs by the IMF resulted in an increase in India’s foreign exchange reserves by US$ 9.5 billion on a BoP basis (i.e. excluding valuation) during April-September 2009. Including the valuation changes, the increase in reserves was higher at US$ 29.3 billion during the same period.

2. Balance of Payments for July-September (Q2) of 2009-10

The major items of the BoP for Q2 of 2009-10 are set out below in Table 1.

Merchandise Trade

(i) The decline in exports which started since October 2008 continued during the second quarter of 2009-10. On a BoP basis, India’s merchandise exports recorded a decline of 21.0 per cent in Q2 of 2009-10 as against an increase of 39.6 per cent in Q2 of 2008-09.

(ii) Import payments, on a BoP basis, registered a decline of 19.6 per cent in Q2 of 2009-10 as against a higher growth of 54.8 per cent in the corresponding period of last year.

Table 1: Major Items of India’s Balance of Payments

(US$ million)

Item

April-June

July-September

2008-09 (PR)

2009-10 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

1.

Exports

57,454

38,789

53,630

42,350

2.

Imports

82,731

64,804

92,752

74,552

3.

Trade Balance (1-2)

-25,277

-26,016

-39,121

-32,201

4.

Invisibles, net

22,003

20,022

26,546

19,576

5.

Current Account Balance (3+4)

-3,274

-5,993

-12,575

-12,625

6.

Capital Account*

5,509

6,108

7,841

22,043

7.

Change in Reserves#

 

 

 

 

 

(-Indicates increase; + indicates decrease)

-2,235

-115

4,734

-9,418

*:   Including errors and omissions.        #:    On BoP basis (i.e. excluding valuation).
 P:   Preliminary.       PR:   Partially Revised.


1

(iii) According to the data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), both oil imports and non-oil imports witnessed a decline during Q2 of 2009-10 by 45.7 per cent and 27.5 per cent, respectively. The decline in oil imports was mainly due to significant decline in oil prices to US$ 67.6 per barrel during Q2 of 2009-10 from its peak of US$ 132.5 per barrel in July 2008 (Chart 1). Oil imports in Q2 of 2009-10 accounted for about 28.7 per cent of total imports (35.0 per cent in Q2 of 2008-09).

Trade Deficit


(i) Trade deficit on a BoP basis was lower at US$ 32.2 billion in Q2 of 2009-10 as compared to US$ 39.1 billion in Q2 of 2008-09 (Chart 2).


2

Invisibles

(i) Invisibles receipts, comprising services, current transfers and income, registered a decline of 15.1 per cent in Q2 of 2009-10 (as against a higher growth of 33.1 per cent in Q2 of 2008-09). Major categories of services exports registered a decline during the quarter. Receipts under non-software miscellaneous services including business services, construction and royalties, copy rights and licence fees declined. Private transfers receipts, however, increased by 3.6 per cent during the quarter.

(ii) Invisible payments recorded a marginal increase during Q2 of 2009-10 mainly on account of payments under business and financial services.

(iii) Net invisibles (invisibles receipts minus invisibles payments) turned out to be lower at US $ 19.6 billion in Q2 of 2009-10 (US $ 26.5 billion in Q2 of 2008-09) mainly due to decline in services exports, particularly non-software services receipts (Table 2). At this level, net invisibles surplus financed 60.8 per cent of trade deficit in Q2 of 2009-10 (67.9 per cent in Q2 of 2008-09).

Current Account Deficit

(i) Despite lower trade deficit, current account deficit at US$ 12.6 billion in Q2 of 2009-10 was almost at the same level as last year, mainly on account of lower net invisibles surplus. The invisibles surplus, however, continued to be driven by private transfers and software exports.

Table 2: Net Invisibles

(US$ million)

Item

April-June

July-September

2008-09 (PR)

2009-10 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

A.

Services (1 to 5)

10,710

9,098

14,400

6,273

 

1.

Travel

341

282

75

126

 

2.

Transportation

-713

-287

-710

346

 

3.

Insurance

123

73

71

43

 

4.

Govt. not included elsewhere

19

-3

-14

-29

 

5.

Miscellaneous

10,940

9,033

14,978

5,787

 

of which:

 

 

 

 

 

Software

11,237

10,373

11,185

10,207

 

Non-Software

-297

-1,340

3,793

-4,420

B.

Transfers

12,143

12,878

12,942

13,702

 

Private

12,102

12,939

12,988

13,757

 

Official

40

-61

-46

-54

C.

Income

-849

-1,953

-796

-399

 

Investment Income

-676

-1,843

-755

-248

 

Compensation of Employees

-174

-110

-41

-152

Invisibles (A+B+C)

22,003

20,022

26,546

19,576

P: Preliminary.        PR: Partially Revised.

Capital Account and Reserves

(i) Both gross capital inflows and outflows remained strong during Q2 of 2009-10. The gross capital inflows to India during Q2 of 2009-10 amounted to US $ 98.1 billion (US $ 90.0 billion in Q2 of 2008-09) mainly on account of higher foreign investment inflows of US$ 55.8 billion.

(ii) Net capital flows were also substantially higher at US $ 23.6 billion in Q2 of 2009-10 than that of US $ 7.1 billion in Q2 of 2008-09 mainly due to large net foreign investment inflows and SDR allocations by the IMF during the quarter (Table 3).

(iii) Foreign Direct Investment (FDI) broadly comprise equity, reinvested earnings and inter-corporate loans. Net FDI flows (net inward FDI minus net outward FDI) were higher at US $ 7.1 billion in Q2 of 2009-10 as compared with US $ 4.9 billion in Q2 of 2008-09. Net inward FDI remained buoyant at US $ 11.3 billion during Q2 of 2009-10 (US $ 8.8 billion in Q2 of 2008-09) reflecting relatively better growth prospects of the Indian economy. Net outward FDI amounted to US $ 4.2 billion in Q2 of 2009-10 (US $ 3.9 billion in Q2 of 2008-09).

(iv) Portfolio investment primarily comprising foreign institutional investors’ (FIIs) investments and American Depository Receipts (ADRs)/ Global Depository Receipts (GDRs) continued their strong upward trend to record a net inflow of US $ 9.7 billion in Q2 of 2009-10 (as against net outflows of US $ 1.3 billion in Q2 of 2008-09) mainly due to revival of FII inflows since the Q1 of 2009-10. Inflows under portfolio investment were led by large purchases of equities (amounting to US$ 7.0 billion during Q2 of 2009-10) by FIIs in the Indian stock market and revival in net inflows under ADRs/GDRs due to growth of stock prices of Indian companies.

Table 3: Net Capital Flows

(US $ million)

 

April-June

July-September

2008-09 (PR)

2009-10 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

1.

Foreign Direct Investment

8,964

7,025

4,903

7,116

 

Inward FDI

11,876

9,651

8,778

11,326

 

Outward FDI

2,912

2,626

3,876

4,209

2.

Portfolio Investment

-4,207

8,268

-1,311

9,678

 

Of which

 

 

 

 

 

FIIs

-5,177

8,227

-1,437

7,038

 

ADRs/GDRs

999

43

136

2,664

3.

External Assistance

351

84

518

487

4.

External Commercial Borrowings

1,479

-441

1,687

1,186

5.

NRI Deposits

814

1,817

259

1,047

6.

Banking Capital excluding NRI Deposits

1,882

-5,183

2,016

3,376

7.

Short-term Trade Credit

4,503

-1,463

402

845

8.

Rupee Debt Service

-30

-23

-3

-1

9.

Other Capital*

-8,904

-4,131

-1372

-121

Total (1 to 9)

4,853

5,955

7,099

23,613

P: Preliminary.       PR: Partially Revised.      *: SDR allocations are included.

(v) According to the guidelines given in the Sixth Edition of the Balance of Payments Manual (BPM6) of the International Monetary Fund (IMF), allocations under Special Drawing Rights (SDR) are treated as liabilities to nonresidents (foreign liabilities) and reported as liabilities under other investments of the financial account of the balance of payments. Accordingly, a general allocation of SDRs 3,082.5 million on August 28, 2009 and a special allocation of SDRs 214.6 million together amounting to US$ 5.2 billion is included in the ‘other capital’ of the capital account of the balance of payments for Q2 of 2009-10. The allocations have a debit entry in the reserve assets of the balance of payments showing an equal amount of increase in the foreign exchange reserves.

(vi) Foreign exchange reserves, on BoP basis (i.e., excluding valuation) have shown an accretion of US $ 9.4 billion in Q2 of 2009-10 as against a decline in reserves of US $ 4.7 billion in Q2 of 2008-09. The increase in the reserves was mainly due to large capital inflows and SDR allocations by the IMF.

3. Balance of Payments for April-September 2009

(i) As alluded to earlier, taking into account the partially revised data for Q1 of 2009-10 and the preliminary data for Q2 of 2009-10, the BoP data for the first half of the financial year 2009-10 (April-September) have been compiled. While the detailed data are set out in Statement I in standard format of BoP presentation, the major items are presented in Table 4.

Table 4: Major Items of India’s Balance of Payments: April-September 2009

(US$ million)

Item

April-March

April-September

2007-08 (R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

1.

Exports

166,162

189,001

111,085

81,139

2.

Imports

257,629

307,651

175,483

139,356

3.

Trade Balance (1-2)

-91,467

-118,650

-64,398

-58,217

4.

Invisibles, net

75,731

89,923

48,549

39,599

5.

Current Account Balance (3+4)

-15,737

-28,728

-15,849

-18,618

6.

Capital Account*

107,901

8,648

13,350

28,151

7.

Change in Reserves#

 

 

 

 

 

(-Indicates increase;+ indicates decrease)

-92,164

20,080

2,499

-9,533

*:   Including errors and omissions.        #:    On BoP basis (i.e. excluding valuation).
P:   Preliminary.       PR:   Partially Revised.           R:Revised.

Merchandise Trade

(i) On a BoP basis, India’s merchandise exports posted a decline of 27.0 per cent in April-September 2009 (as against a growth of 48.1 per cent in the corresponding period of the previous year).

(ii) Import payments, on a BoP basis, declined by 20.6 per cent during April-September 2009 as against a sharp increase of 51.0 per cent in the corresponding period of the previous year. The decline in imports is mainly attributed to the base effect and decline in oil prices.

(iii) According to the DGCI&S data, oil imports recorded a decline of 45.0 per cent in April-September 2009 as against a significant rise of 83 per cent during April-September 2008. During the same period, non-oil imports showed a relatively modest decline of 26.3 per cent (as against an increase of 43.8 per cent in April-September 2008). In absolute terms, the oil imports accounted for about 26 per cent of total imports during April-September 2009 (34.2 per cent in the corresponding period of the previous year).

(iv) According to the data released by the Gems & Jewellery Export Promotion Council, total import of gems and jewellery declined by 12 per cent during April-September 2009 as against an increase of 33.6 per cent during the corresponding period of last year.

Trade Deficit

(i) On a BoP basis, the merchandise trade deficit remained lower at US $ 58.2 billion during April-September 2009 as compared with US $ 64.4 billion in April-September 2008 mainly on account of decline in oil imports (Chart 2).

Invisibles

Invisibles Receipts


(i) Invisibles receipts recorded a decline of 11.6 per cent during April-September 2009 as compared with an increase of 32.5 per cent in the corresponding period of the previous year, mainly attributed to the lower receipts under almost all components of services (Table 5 and Chart 3). However, the private transfers receipts, which had marginally declined during the second half of 2008-09, increased by 4.3 per cent in the first half of 2009-10.

(ii) Private transfers are mainly in the form of (i) Inward remittances from Indian workers abroad for family maintenance, (ii) Local withdrawal from Non-Resident Indian Rupee deposits, (iii) Gold and silver brought through passenger baggage, and (iv) Personal gifts/donations to charitable/ religious institutions.

(iii) Private transfer receipts, comprising mainly remittances from Indians working overseas, increased to US $ 27.5 billion in April-September 2009 as compared with US $ 26.4 billion in the corresponding period of the previous year. Private transfer receipts constituted 17.6 per cent of current receipts in April-September 2009 (13.4 per cent in the corresponding period of the previous year).

(iv) NRI deposits, when withdrawn domestically, form part of private transfers because once withdrawn for local use these become unilateral transfers and do not have any quid pro quo.    Such    local    withdrawals/redemptions from NRI deposits cease to exist as liability in the capital account of the balance of payments and assume the form of private transfers, which is included in the current account of balance of payments.


Table 5: Invisibles Gross Receipts and Payments

(US$ million)

Item

Invisibles Receipts

Invisibles Payments

April-March

April-September

April-March

April-September

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

6

7

8

9

A.

Services (1 to 5)

90,342

101,678

50,979

40,057

51,490

52,047

25,870

24,686

 

1.

Travel

11,349

10,894

5,290

4,805

9,258

9,425

4,874

4,397

 

2.

Transportation

10,014

11,286

5,656

5,056

11,514

12,820

7,079

4,998

 

3.

Insurance

1,639

1,419

727

771

1,044

1,130

533

655

 

4.

Govt. not included elsewhere

331

389

211

200

376

793

206

232

 

5.

Miscellaneous

67,010

77,691

39,095

29,225

29,298

27,879

13,177

14,404

 

of which:

 

 

 

 

 

 

 

 

 

Software

40,300

46,300

24,201

21,409

3,358

2,814

1,778

829

 

Non-Software

26,710

31,391

14,894

7,816

25,940

25,065

11,398

13,575

B.

Transfers

44,261

47,547

26,570

27,612

2,316

2,749

1,485

1,032

 

Private

43,508

46,903

26,371

27,515

1,802

2,336

1,281

820

 

Official

753

645

199

97

514

413

204

212

C.

Income

14,272

14,309

7,718

7,700

19,339

18,816

9,363

10,052

 

Investment

 

 

 

 

 

 

 

 

 

Income

13,811

13,483

7,273

7,267

18,244

17,506

8,704

9,358

 

Compensation of Employees

461

825

445

433

1,095

1,309

659

695

Invisibles (A+B+C)

148,875

163,534

85,267

75,368

73,144

73,612

36,718

35,770

P: Preliminary.                 PR: Partially Revised.                       R: Revised.
Note: Details of Non-software services under Miscellaneous (Item 5) are given in Table 8.



3


Table 6: Inflows, Outflows and Local Withdrawals under NRI Deposits

(US$ million)

Year

Inflows

Outflows

Local Withdrawals

1

2

3

4

2007-08 (R)

29,400

29,222

18,919

2008-09 (PR)

37,147

32,858

20,617

April-September 2008 (PR)

18,274

17,202

11,168

April-September 2009 (P)

21,513

18,649

11,818

R: Revised.       P: Preliminary.          PR: Partially Revised.

(v) Under the NRI deposits, both inflows as well as outflows remained steady in the recent past. A major part of outflows from NRI deposits is in the form of local withdrawals. These withdrawals, however, are not actually repatriated but are utilised domestically. During April-September 2009, the share of local withdrawals in total outflows from NRI deposits was 63.4 per cent as compared with 64.9 per cent in April-September 2008 (Table 6).

(vi) Under Private transfers, the inward remittances for family maintenance accounted for 53.3 per cent of the total private transfer receipts, while local withdrawals accounted for 43.0 per cent in April-September 2009 as against 52.6 per cent and 42.3 per cent, respectively, in April-September 2008 (Table 7).

(vii) Software receipts at US $ 21.4 billion in April-September 2009 showed a decline of 11.5 per cent as against a higher growth of 35.3 per cent in April-September 2008.

(viii)Miscellaneous receipts, excluding software exports, stood at US $ 7.8 billion in April-September 2009 (US $ 14.9 billion in April-September 2008). Receipts under non-software miscellaneous services like business services, construction and royalties, copy rights and licence fees declined. The break-up of these data is presented in Table 8.

(ix) The key components of the business services receipts and payments were mainly the trade related services, business and management consultancy services, architectural, engineering and other technical services and services relating to maintenance of offices (Table 9). Under business services, receipts of architectural, engineering and other technical services, maintenance of offices abroad and business and management consultancy services declined significantly while payments related to these services rose moderately resulting in net outgo under these services.

Table 7: Details of Private Transfers to India

(US $ million)

Year

Total
Private
Transfers

Of which:

Inward remittances for family maintenance

Local withdrawals/ redemptions from NRI Deposits

Amount

Percentage Share in Total

Amount

Percentage Share in Total

1

2

3

4

5

6

2007-08 (R)

43,508

21,922

50.4

18,919

43.5

2008-09 (PR)

46,903

23,886

50.9

20,617

44.0

April-September 2008 (PR)

26,371

13,882

52.6

11,168

42.3

April-September 2009 (P)

27,515

14,677

53.3

11,818

43.0

R: Revised.     P: Preliminary.     PR: Partially Revised.


Table 8: Break-up of Non-Software Receipts and Payments under Miscellaneous Services

(US$ million)

Item

 

Receipts

Payments

April-March

April-September

April-March

April-September

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

6

7

8

9

1

Communication

2,408

2,172

1,250

725

860

1087

523

625

2.

Construction

763

867

372

299

708

896

349

641

3.

Financial

3,217

3,948

2,288

1,849

3,133

2,958

1,586

2,062

4.

News Agency

503

800

397

172

506

386

165

162

5.

Royalties, Copyrights & License Fees

157

132

71

116

1,038

1,721

805

823

6.

Business Services

16,772

16,445

8,410

5,090

16,553

15,435

7,251

8,477

7.

Personal, Cultural, and Recreational

562

729

297

234

211

322

173

147

8.

Others

2,328

6,298

1,809

-669

2,931

2,260

546

638

Total (1 to 8)

26,710

31,391

14,894

7,816

25,940

25,065

11,398

13,575

P: Preliminary.                 PR: Partially Revised.                       R: Revised.
 Note: Details of Business Services (item 6) are given in Table 9.

(x) Investment income receipts amounted to US $ 7.3 billion in April-September 2009 and remained almost at same level of last year.

Table 9: Details of Business Services

(US$ million)

Item

Receipts

Payments

April-March

April-September

April-March

April-September

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

6

7

8

9

1.

Trade Related

2,234

2,016

1,150

675

2,285

1,651

828

1,036

2

Business & Management Consultancy

4,433

5,017

2,605

1,791

3,422

3,530

1,355

2,324

3.

Architectural, Engineering, and other Technical Services

3,145

1,766

903

655

3,090

3,130

1,498

1,939

4.

Maintenance of Offices abroad

2,861

2,984

1,269

704

2,761

2,673

1,150

1,152

5.

Others

4,099

4,662

2,483

1,265

4,995

4,451

2,420

2,026

Total (1 to 5)

16,772

16,445

8,410

5,090

16,553

15,435

7,251

8,477

P: Preliminary.        PR: Partially Revised.         R: Revised.

Invisibles Payments

(i) Invisibles payments have also shown a decline of 2.6 per cent in April-September 2009 (an increase of 15.0 per cent in April-September 2008). The invisibles payments declined mainly due to lower payment towards travel, transportation, non-software services and private transfers.

(ii) Lower transportation payments in April-September of 2009 (a decline of 29.4 per cent) mainly reflected the lower volume of imports. In addition, lower payments may also be attributed to the lower freight rates on international shipping as compared to corresponding period of last year.

(iii) Investment income payments, reflecting mainly the interest payments on commercial borrowings, external assistance, non-resident deposits, and reinvested earnings of the Foreign Direct Investment (FDI) enterprises operating in India, amounted to US $ 9.4 billion in April-September 2009 higher than that of April-September 2008   (Table 10). The increase in investment income payments was mainly due to rise in reinvestment earnings of the FDI companies.

Invisibles Balance

(i) Net invisibles (invisibles receipts minus invisibles payments) stood lower at US $ 39.6 billion during April-September of 2009 as compared to US$ 48.5 billion during April-September 2008. At this level, the invisibles surplus financed about 68.0 per cent of trade deficit during April-September 2009  as against 75.4 per cent during April-September 2008.

Table 10: Details of Receipts and Payments of Investment Income

(US$ million)

Item

April-March

April-September

2007-08 (R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

A.

Receipts

13,811

13,483

7,273

7,267

 

Of which:

 

 

 

 

 

1.

Reinvested Earnings on Indian Investment Abroad

1,084

1,084

542

542

 

2.

Interest/Discount Earnings on Foreign Exchange Reserves

10,124

10,480

5,849

3,925

B.

Payments

18,244

17,506

8,704

9,358

 

Of which:

 

 

 

 

 

1.

Interest Payment on NRI deposits

1,813

1,547

735

796

 

2.

Interest Payment on ECBs

2,647

2,702

1,407

812

 

3.

Interest Payments on External Assistance

1,143

1,010

505

438

 

4.

Dividends and Profits

3,226

3,172

2,153

2,246

 

5.

Reinvested Earnings of FDI Companies in India

7,679

6,428

2,985

3,831

C.

Net Investment Income (A-B)

-4,433

-4,023

-1,431

-2,091

P: Preliminary.                    PR: Partially Revised.                      R: Revised.

Current Account Deficit

(i) Despite lower trade deficits, current account deficit increased to US $ 18.6 billion in April-September 2009 from US $ 15.8 billion in April-September 2008 mainly due to lower net invisibles surplus (Chart 4).

4

 

Capital Account

(i)    The gross capital inflows to India during April-September 2009 amounted to US $ 175.3 billion (US $ 184.4 billion in April-September 2008) as against an outflow of US $ 145.8 billion (US $ 172.5 billion in April-September 2008) (Table 11).

Table 11: Gross Capital Inflows and Outflows

(US$ million)

Item

Gross Inflows

Gross Outflows

 

April-March

April-September

April-March

April-September

 

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

2007-08
(R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

6

7

8

9

1.

Foreign Direct Investment

37,321

36,261

21,280

21,262

21,429

18,763

7,413

7,120

2.

Portfolio Investment

 

 

 

 

 

 

 

 

 

Of which:

233,800

128,654

83,398

82,985

206,367

142,685

88,916

65,040

 

FIIs

226,621

127,349

82,228

80,252

206,294

142,366

88,842

64,987

 

ADR/GDRs

6,645

1,162

1,135

2,707

3.

External Assistance

4,241

5,041

2,004

2,057

2,126

2,405

1,135

1,486

4.

External Commercial Borrowings

30,293

15,244

6,332

5,168

7,684

7,303

3,166

4,424

5.

NRI Deposits

29,400

37,147

18,274

21,513

29,222

32,858

17,202

18,649

6.

Banking Capital excluding NRI Deposits

26,414

28,060

20,073

10,608

14,832

35,595

16,175

12,414

7.

Short-term Trade Credit

47,658

41,841

23,892

21,692

31,729

43,750

18,986

22,310

8.

Rupee Debt Service

0

0

0

0

122

100

32

23

9.

Other Capital

29,229

20,179

9,154

10,047

18,261

21,723

19,430

14,298

Total   (1 to 9)

438,357

312,427

184,407

175,333

331,772

305,181

172,455

145,765

P: Preliminary.        PR: Partially Revised.           R: Revised.           — : Nil/NA.

(ii) Net capital flows, however, at US $ 29.6 billion in April-September 2009 remained higher as compared with US $ 12.0 billion in April-September 2008. Under net capital flows, all the components except loans and banking capital, showed improvement during April-September 2009 from their level in the corresponding period of the previous year (Table 12). In banking capital, net inflows under non­residents’ deposit remained higher during April-September 2009 as compared to their level last year.

(iii) Net inward FDI into India remained buoyant at US $ 21.0 billion during April-September 2009 (US $ 20.7 billion in April-September 2008) reflecting the continuing liberalisation and better growth performance of the Indian economy. During this period, FDI was channeled mainly into manufacturing (21.4 per cent) followed by communication services (12.8 per cent) and real estate sector (12.6 per cent).Net outward FDI of India at US $ 6.8 billion in April-September 2009 remained almost at the same level of the corresponding period of the last year. Due to large inward FDI, the net FDI (inward FDI minus outward FDI) was marginally higher at US$ 14.1 billion in April-September 2009.

(iv) Portfolio investment mainly comprising Foreign Institutional Investors (FIIs) investments and American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) witnessed large net inflows (US $ 17.9 billion) in April-September 2009 (net outflows of US $ 5.5 billion in April-September 2008) due to large purchases by FIIs in the Indian capital market reflecting revival in growth prospects of the economy and improvement in global investors’ sentiment. The inflows under ADRs/ GDRs increased to US $ 2.7 billion in April-September 2009 (US $ 1.1 billion in April-September 2008).

Table 12: Net Capital Flows

(US $ million)

Item

April-March

April-September

2007-08 (R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

1.

Foreign Direct Investment

15,893

17,498

13,867

14,142

 

Inward FDI

34,728

34,992

20,654

20,977

 

Outward FDI

18,835

17,495

6,788

6,835

2.

Portfolio Investment

 

 

 

 

 

Of which:

27,433

-14,030

-5,518

17,946

 

FIIs

20,327

-15,017

-6,614

15,265

 

ADR/GDRs

6,645

1,162

1,135

2,707

3.

External Assistance

2,114

2,637

869

571

4.

External Commercial Borrowings

22,609

7,941

3,166

745

5.

NRI Deposits

179

4,290

1,073

2,864

6.

Banking Capital excluding NRI Deposits

11,580

-7,535

3,898

-1,807

7.

Short-term Trade Credit

15,930

-1,909

4,905

-618

8.

Rupee Debt Service

-122

-100

-33

-23

9.

Other Capital

10,969

-1,545

-10,276

-4,251

Total (1 to 9)

106,585

7,246

11,952

29,568

R: Revised.                  P: Preliminary.              PR: Partially Revised.
Note: Details of Other Capital (Item 9) are given in Table 13.


(v) Net External Commercial Borrowings (ECBs) inflow remained lower at US $ 0.7 billion in April-September 2009 (US $ 3.2 billion in April-September 2008).

(vi) Banking capital (net) amounted to US $ 1.1 billion in April-September 2009 as compared with US $ 5.0 billion in April-September 2008. Among the components of banking capital, NRI deposits witnessed higher net inflows of US $ 2.9 billion in April-September 2009 as compared with lower net inflows of US $ 1.1 billion in April-September 2008.

(vii) Short term trade credit recorded a net outflow of US $ 0.6 billion (inclusive of suppliers’ credit up to 180 days) during April-September 2009 as against a net inflow of US $ 4.9 billion during the same period of the previous year.

(viii) Other capital includes leads and lags in exports, SDR allocation, funds held abroad, advances received pending issue of shares under FDI and other capital not included elsewhere (n.i.e).Other capital recorded a lower net outflow of US $ 4.3 billion in April-September 2009 as compared with a higher net outflow of US$ 10.3 billion in April-September 2008. The details of other capital are set out in Table 13.

4.  Reserves Variation

(i) The accretion in foreign exchange reserves on BoP basis (i.e., excluding valuation) was US $ 9.5 billion in April-September 2009 (as against a decline of US $ 2.5 billion in April-September 2008) (Table 14 and Chart 5). Taking into account the valuation gain, foreign exchange reserves recorded an increase of US $ 29.3 billion in April-September 2009 (as against a decline in reserves of US $ 23.4 billion in April-September 2008 (Annex A).

(ii) The IMF had approved a general allocation of Special Drawing Rights (SDRs) for an amount equivalent to US$ 250 billion, which was made on August 28, 2009. In addition, a special SDR allocation pursuant to the fourth amendment of the IMF’s Articles of Agreement, amounting to US $33 billion was made on September 9, 2009. Pursuant to this, a general allocation of SDR 3,082 million (equivalent to US$ 4,821 million) and a special allocation of SDR 214.6 million (equivalent to US$ 340 million) were allocated to India by the IMF on August 28, 2009 and September 9, 2009, respectively. It has resulted in an increase in India’s foreign exchange reserves by US$ 5.2 billion.


Table 13: Details of ‘Other Capital’ (Net)

(US $ million)

Item

April-March

April-September

2007-08 (R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

1.

Lead and Lags in Exports

-899

-11,866

-14,585

2,945

2.

Net Funds Held Abroad

-2,682

320

223

-5,265

3.

Advances Received Pending Issue of Shares under FDI

7,200

3,002

2,821

-2,689

4.

SDR Allocation

5,161

5.

Other capital not included elsewhere (n.i.e) (Inclusive of derivatives and hedging, migrant transfers and other capital transfers)

7,350

6,999

1,266

4,401

Total (1 to 5)

10,969

-1,545

-10,276

-4,251

P: Preliminary.      PR: Partially Revised.        R: Revised.          —: Nil/NA.


Table 14: Sources of Variation to Reserves (BoP Basis) in April-September 2009

(US $ million)

Item

April-March

April-September

2007-08 (R)

2008-09 (PR)

2008-09 (PR)

2009-10 (P)

1

2

3

4

5

A.

Current Account Balance

-15,737

-28,728

-15,849

-18,618

B.

Capital Account*

107,901

8,648

13,350

28,151

 

Of Which

 

 

 

 

 

Foreign Direct Investment

15,893

17,498

13,867

14,142

 

Portfolio Investment

27,433

-14,030

-5,518

17,946

 

External Commercial Borrowings

22,609

7,941

3,166

745

 

Banking Capital

11,759

-3,245

4,971

1,057

 

Short Term Trade Credit

15,930

-1,909

4,906

-618

D.

Change in Reserves: (-) indicates increase; (+) indicates decrease)#

-92,164

20,080

2,499

-9,533

* : Including errors and omissions.                  # : On BoP basis (i.e., excluding valuation).
P : Preliminary.           PR : Partially Revised.         R : Revised.

(iii) At the end of September 2009, outstanding foreign exchange reserves stood at US $ 281.3 billion.

(iv) To sum up, the key features of India’s BoP that emerged in April-September 2009 were: (i) lower trade deficit (US $ 58.2 billion) led by lower oil import bills, (ii) lower net invisibles surplus (US $ 39.6 billion) led by lower software services and decline in business services and investment income, (iii) higher current account deficit (US $ 18.6 billion) due to lower net invisibles, (iv) large net capital inflows mainly led by turnaround in FII inflows and steady FDI inflows, and (v) increase in reserves (excluding valuation) of US $ 9.5 billion (as against a decline in reserves of US $ 2.5 billion in April-September 2008) due to large capital inflows and SDRs allocations by the IMF. The details of key indicators are set out in Table 15.

5


Table 15: Key Indicators of India’s Balance of Payments

(US $ million)

Item

April-March

April-September

2007-08 R

2008-09 PR

2008-09 PR

2009-10 P

1

2

3

4

5

Merchandise Trade

1.

Exports (US $ on BoP basis) Growth Rate (%)

28.9

13.7

48.1

-27.0

2.

Imports (US $ on BoP basis) Growth Rate (%)

35.1

19.4

51.0

-20.6

3.

Crude Oil Prices, Per Barrel (Indian Basket)

79.2

82.7

116.5

63.4

4.

Trade Balance (US $ billion)

-91.5

-118.7

-64.4

-58.2

5.

Exports / GDP ( %)

14.2

16.3

6.

Imports / GDP ( %)

22.0

26.6

7.

Trade Balance / GDP ( % )

-7.8

-10.3

Invisibles

8.

Net Invisibles (US $ billion)

75.7

89.9

48.5

39.6

9.

Net Invisibles Surplus / Trade Deficit (%)

82.8

75.8

75.4

68.0

10.

Invisibles Receipts /Current Receipts (%)

47.3

46.4

43.4

48.2

11.

Services Receipts / Current Receipts (%)

28.7

28.8

26.0

25.6

12.

Private Transfers /Current Receipts (%)

13.8

13.3

13.4

17.6

13.

Net Invisibles / GDP ( % )

6.5

7.8

 

14.

Private Transfers Receipts / GDP ( % )

3.7

4.1

15.

Software exports / GDP (%)

3.4

4.0

16.

Services (net) / GDP (%)

3.3

4.3

Current Account

17.

Current Receipts (US $ billion)

315.0

352.5

196.4

156.5

18.

Current Payments (US $ billion)

330.8

381.3

212.2

175.1

19.

Current Account Balance (US $ billion)

-15.7

-28.7

-15.8

-18.6

20.

Current Account Balance / GDP ( % )

-1.3

-2.5

Capital Account

21.

Gross Capital Inflows (US $ billion)

438.4

312.4

184.4

175.3

22.

Gross Capital Outflows (US $ billion)

331.8

305.2

172.5

145.8

23.

Net Capital Flows (US $ billion)

106.6

7.2

12.0

29.6

24.

Net FDI / Net Capital Flows (%)

14.9

241.5

116.0

47.8

25.

Net Portfolio Investment / Net Capital Flows (%)

25.7

-193.6

-46.2

60.7

26.

Net ECBs / Net Capital Flows (%)

21.2

109.6

26.5

2.5

Openness Indicators

27.

Exports plus Imports of Goods / GDP ( % )

36.1

42.9

28.

Current Receipts plus Current Payments / GDP ( % )

55.0

63.4

29.

Net Capital Inflows / GDP ( % )

9.1

0.6

30.

Gross Capital Inflows plus Outflows / GDP ( % )

65.6

53.4

31.

Current Receipts plus Current Payments & Gross Capital Inflows plus Outflows / GDP ( % )

120.7

116.8

Reserves

32.

Import Cover of Reserves (in months)

14.4

9.8

10.8

12.4

33.

Outstanding Reserves as at end period (US $ billion)

309.7

252.0

286.3

281.3

P : Preliminary.     PR : Partially Revised.        R : Revised.        —: NA.

5. Difference in DGCI&S and Balance of Payments Imports

(i) During April-September 2009, based on the records of the DGCI&S imports (based on custom) data and the BoP merchandise imports (based on banking channel data), the difference between the two data sets works out to about US $ 14.8 billion (Table 16).

Table 16 : DGCI&S and the Balance of Payments Import Data

(US$ million)

Item

2007-08
(April-March)

2008-09 (PR)
(April-March)

2009-10 (P)
(April-September)

1

2

3

4

1.

BoP Imports

257,629

307,651

139,356

2.

DGCI&S Imports

251,439

303,696

124,522

3.

Difference (1-2)

6,190

3,955

14,834

P : Preliminary.    PR : Partially Revised.    R : Revised.

Annex A:
Sources of Variation in Foreign Exchange Reserves in India: April-September 2009-10

During April-September 2009, there was an accretion to foreign exchange reserves mainly on account of valuation changes. Also, inflows under foreign investments and Non-Resident Indian deposits and SDR allocations by the IMF have contributed to the increase in foreign exchange reserves during April-September 2009. The sources of variation in the foreign exchange reserves are set out in Table A1.

The foreign exchange reserves (including the valuation effects) increased by US$ 29,293 million during April-September 2009 as against a decline of US$ 23,387 million during April-September 2008 (Table A2).

On balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 9,533 million during April-September 2009 as against a decline of US$ 2,499 million during April-September 2008. The valuation gain, reflecting the depreciation of the US dollar against the major currencies, accounted for US$ 19,760 million during April-September 2009 as compared with a valuation loss of US$ 20,888 million during April-September 2008. Accordingly, valuation gain during April- September 2009 accounts for 67.5 per cent of the total increase in foreign exchange reserves.

The IMF made additional allocations of SDRs to India in two tranches viz., general allocation of SDR 3,082 million (equivalent to US$ 4,821 million) on August 28, 2009 and a special allocation of SDR 214.6 million (equivalent to US$ 340 million) on September 9, 2009. This has raised India’s foreign exchange reserves by US$ 5,161 million during the quarter.

Table A1: Sources of Variation in Foreign Exchange Reserves

(US $ million)

Items

April-September 2008

April-September 2009

I.

Current Account Balance

(-)15,849

(-) 18,618

II.

Capital Account (net) (a to f)

13,350

28,151

 

a.Foreign Investment (i+ii)

8,349

32,088

 

(i) Foreign Direct
Investment

13,867

14,142

 

(ii) Portfolio Investment

(-)5,518

17,946

 

Of which:

 

 

 

FIIs

(-)6,614

15,265

 

ADRs/GDRs

1,135

2,707

 

b.External Commercial Borrowings

3,166

745

 

c. Banking Capital

4,971

1,057

 

of which: NRI Deposits

1,072

2,864

 

d. Short-Term Trade Credit

4,906

(-) 618

 

e.External Assistance

869

571

 

f. Other items in capital
account*

(-) 8,911

(-) 5,692

III.

Valuation Change

(-) 20,888

19,760

Total (I+II+III)

(-) 23,387

29,293

Note: (i) *: ‘Other items in capital account’ apart from ‘Errors and Omissions’ also include SDR allocations, leads and lags in exports, funds held abroad, advances received pending issue of shares under FDI and transactions of capital receipts not included elsewhere.
(ii) Increase in reserves(+) / Decrease in reserves (-).


Table A2: Comparative Position

(US$ million)

 

April-September 2008

April-September 2009

1.

Change in Foreign Exchange Reserves (Including Valuation Effects)

(-) 23,387

29,293

2.

Valuation Effects [Gain (+)/Loss (-)]

(-) 20,888

19,760

3.

Change in Foreign Exchange Reserves on BoP basis (Excluding Valuation Effects)

(-) 2,499

9,533

4.

Percentage of increase/decline in Reserves explained by Valuation Gain/Loss

89.3

67.5

Note: Increase in reserves (+)/Decrease in reserves (-).


Statement I : India’s Overall Balance of Payments

(US$ million)

Item

2005-06

2006-07

Credit

Debit

Net

Credit

Debit

Net

1

2

3

4

5

6

7

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

105,152

157,056

-51,904

128,888

190,670

-61,782

 

II.

Invisibles (a+b+c)

89,687

47,685

42,002

114,558

62,341

52,217

 

 

a)

Services

57,659

34,489

23,170

73,780

44,311

29,469

 

 

 

i)

Travel

7,853

6,638

1,215

9,123

6,684

2,439

 

 

 

ii)

Transportation

6,325

8,337

-2,012

7,974

8,068

-94

 

 

 

iii)

Insurance

1,062

1,116

-54

1,195

642

553

 

 

 

iv)

G.n.i.e.

314

529

-215

253

403

-150

 

 

 

v)

Miscellaneous

42,105

17,869

24,236

55,235

28,514

26,721

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

23,600

1,338

22,262

31,300

2,267

29,033

 

 

 

 

Business Services

9,307

7,748

1,559

14,544

15,866

-1,322

 

 

 

 

Financial Services

1,209

965

244

3,106

2,991

115

 

 

 

 

Communication Services

1,575

289

1,286

2,262

796

1,466

 

 

b)

Transfers

25,620

933

24,687

31,470

1,391

30,079

 

 

 

i)

Official

669

475

194

635

381

254

 

 

 

ii)

Private

24,951

458

24,493

30,835

1,010

29,825

 

 

c)

Income

6,408

12,263

-5,855

9,308

16,639

-7,331

 

 

 

i)

Investment Income

6,229

11,491

-5,262

8,926

15,688

-6,762

 

 

 

ii)

Compensation of employees

179

772

-593

382

951

-569

Total Current Account (I+II)

194,839

204,741

-9,902

243,446

253,011

-9,565

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

77,298

61,770

15,528

133,210

118,457

14,753

 

 

a)

Foreign Direct Investment (i+ii)

9,178

6,144

3,034

23,590

15,897

7,693

 

 

 

i)

In India

8,962

61

8,901

22,826

87

22,739

 

 

 

 

Equity

5,976

61

5,915

16,481

87

16,394

 

 

 

 

Reinvested Earnings

2,760

2,760

5,828

5,828

 

 

 

 

Other Capital

226

226

517

517

 

 

 

ii)

Abroad

216

6,083

-5,867

764

15,810

-15,046

 

 

 

 

Equity

216

3,982

-3,766

764

13,368

-12,604

 

 

 

 

Reinvested Earnings

1,092

-1,092

1,076

-1,076

 

 

 

 

Other Capital

1,009

-1,009

1,366

-1,366

 

 

b)

Portfolio Investment

68,120

55,626

12,494

109,620

102,560

7,060

 

 

 

i)

In India

68,120

55,626

12,494

109,534

102,530

7,004

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

65,552

55,626

9,926

105,756

102,530

3,226

 

 

 

 

GDRs/ADRs

2,552

2,552

3,776

3,776

 

 

 

ii)

Abroad

86

30

56

 

2.

Loans (a+b+c)

39,479

31,570

7,909

54,642

30,152

24,490

 

 

a)

External Assistance

3,631

1,929

1,702

3,767

1,992

1,775

 

 

 

i)

By India

24

88

-64

20

32

-12

 

 

 

ii)

To India

3,607

1,841

1,766

3,747

1,960

1,787

 

 

b)

Commercial Borrowings

14,343

11,835

2,508

20,883

4,780

16,103

 

 

 

i)

By India

251

-251

626

966

-340

 

 

 

ii)

To India

14,343

11,584

2,759

20,257

3,814

16,443

 

 

c)

Short Term to India

21,505

17,806

3,699

29,992

23,380

6,612

 

 

 

i)

Suppliers’ Credit > 180 days & Buyers’ Credit

19,372

17,647

1,725

25,482

22,175

3,307

 

 

 

ii)

Suppliers’ Credit up to 180 days

2,133

159

1,974

4,510

1,205

3,305

 

3.

Banking Capital (a+b)

21,658

20,285

1,373

37,209

35,296

1,913

 

 

a)

Commercial Banks

20,586

20,144

442

36,799

35,218

1,581

 

 

 

i)

Assets

772

3,947

-3,175

14,466

17,960

-3,494

 

 

 

ii)

Liabilities

19,814

16,197

3,617

22,333

17,258

5,075

 

 

 

 

of which :Non-Resident Deposits

17,835

15,046

2,789

19,914

15,593

4,321

 

 

b)

Others

1,072

141

931

410

78

332

 

4.

Rupee Debt Service

572

-572

162

-162

 

5.

Other Capital

5,941

4,709

1,232

8,230

4,021

4,209

 

Total Capital Account (1 to 5)

144,376

118,906

25,470

233,291

188,088

45,203

C.

Errors & Omissions

516

-516

968

968

D.

Overall Balance
(Total Current Account, Capital Account and Errors & Omissions (A+B+C))

339,215

324,163

15,052

477,705

441,099

36,606

E.

Monetary Movements (i+ii)

15,052

-15,052

36,606

-36,606

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves ( Increase – / Decrease +)

15,052

-15,052

36,606

-36,606

P: Preliminary.              PR: Partially Revised.


Statement I : India’s Overall Balance of Payments (Contd.)

(US$ million)

Item

2007-08

2008-09 PR

Credit

Debit

Net

Credit

Debit

Net

1

8

9

10

11

12

13

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

166,162

257,629

-91,467

189,001

307,651

-118,650

 

II.

Invisibles (a+b+c)

148,875

73,144

75,731

163,534

73,612

89,923

 

 

a)

Services

90,342

51,490

38,853

101,678

52,047

49,631

 

 

 

i)

Travel

11,349

9,258

2,091

10,894

9,425

1,469

 

 

 

ii)

Transportation

10,014

11,514

-1,500

11,286

12,820

-1,534

 

 

 

iii)

Insurance

1,639

1,044

595

1,419

1,130

289

 

 

 

iv)

G.n.i.e.

331

376

-45

389

793

-404

 

 

 

v)

Miscellaneous

67,010

29,298

37,712

77,691

27,879

49,812

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

40,300

3,358

36,942

46,300

2,814

43,486

 

 

 

 

Business Services

16,772

16,553

219

16,445

15,435

1,010

 

 

 

 

Financial Services

3,217

3,133

84

3,948

2,958

990

 

 

 

 

Communication Services

2,408

860

1,548

2,172

1,087

1,084

 

 

b)

Transfers

44,261

2,316

41,945

47,547

2,749

44,798

 

 

 

i)

Official

753

514

239

645

413

232

 

 

 

ii)

Private

43,508

1,802

41,706

46,903

2,336

44,567

 

 

c)

Income

14,272

19,339

-5,068

14,309

18,816

-4,507

 

 

 

i)

Investment Income

13,811

18,244

-4,433

13,483

17,506

-4,023

 

 

 

ii)

Compensation of employees

461

1,095

-635

825

1,309

-484

Total Current Account (I+II)

315,037

330,774

-15,737

352,535

381,263

-28,728

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

271,122

227,796

43,326

164,915

161,448

3,467

 

 

a)

Foreign Direct Investment (i+ii)

37,321

21,429

15,893

36,261

18,763

17,498

 

 

 

i.

In India

34,844

116

34,728

35,158

166

34,992

 

 

 

 

Equity

26,865

108

26,757

27,973

166

27,807

 

 

 

 

Reinvested Earnings

7,679

7,679

6,428

6,428

 

 

 

 

Other Capital

300

8

292

757

757

 

 

 

ii.

Abroad

2,477

21,312

-18,835

1,103

18,597

-17,495

 

 

 

 

Equity

2,477

16,899

-14,422

1,103

14,669

-13,566

 

 

 

 

Reinvested Earnings

1,084

-1,084

1,084

-1,084

 

 

 

 

Other Capital

3,330

-3,330

2,844

-2,844

 

 

b)

Portfolio Investment

233,800

206,367

27,433

128,654

142,685

-14,030

 

 

 

i)

In India

233,564

206,294

27,270

128,512

142,365

-13,853

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

226,621

206,294

20,327

127,349

142,366

-15,017

 

 

 

 

GDRs/ADRs

6,645

6,645

1,162

1,162

 

 

 

ii)

Abroad

236

73

163

142

319

-177

 

2.

Loans (a+b+c)

82,192

41,539

40,653

62,126

53,458

8,669

 

 

a)

External Assistance

4,241

2,126

2,114

5,041

2,405

2,637

 

 

 

i)

By India

23

28

-4

23

33

-10

 

 

 

ii)

To India

4,217

2,098

2,119

5,018

2,371

2,647

 

 

b)

Commercial Borrowings

30,293

7,684

22,609

15,244

7,303

7,941

 

 

 

i)

By India

1,593

1,624

–31

1,997

783

1,214

 

 

 

ii)

To India

28,700

6,060

22,640

13,248

6,521

6,727

 

 

c)

Short Term to India

47,658

31,729

15,930

41,841

43,750

-1,909

 

 

 

i)

Suppliers’ Credit > 180 days & Buyers’ Credit

42,641

31,729

10,913

38,815

38,352

463

 

 

 

ii)

Suppliers’ Credit up to 180 days

5,017

5,017

3,026

5,398

-2,372

 

3.

Banking Capital (a+b)

55,814

44,055

11,759

65,207

68,453

-3,245

 

 

a)

Commercial Banks

55,735

43,623

12,112

65,094

67,868

-2,774

 

 

 

i)

Assets

19,562

12,668

6,894

25,823

28,725

-2,902

 

 

 

ii)

Liabilities

36,173

30,955

5,217

39,270

39,142

128

 

 

 

 

of which :Non-Resident Deposits

29,400

29,222

179

37,147

32,858

4,290

 

 

b)

Others

79

432

–353

114

585

-471

 

4.

Rupee Debt Service

122

-122

100

-100

 

5.

Other Capital

29,229

18,261

10,969

20,179

21,723

-1,545

 

Total Capital Account (1 to 5)

438,357

331,772

106,585

312,427

305,181

7,246

C.

Errors & Omissions

1,316

1,316

1,402

1,402

D.

Overall Balance
(Total Current Account, Capital Account and Errors & Omissions (A+B+C))

754,710

662,546

92,164

666,364

686,444

-20,080

E.

Monetary Movements (i+ii)

92,164

-92,164

20,080

20,080

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves ( Increase – / Decrease +)

92,164

-92,164

20,080

20,080


Statement I : India's Overall Balance of Payments (Contd.)

(US$ million)

Item

Apr-Jun 2006

Jul-Sep 2006

Credit

Debit

Net

Credit

Debit

Net

1

14

15

16

17

18

19

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

29,663

46,613

-16,950

32,701

48,717

-16,016

 

II.

Invisibles (a+b+c)

24,934

12,421

12,513

24,866

14,597

10,269

 

 

a)

Services

16,042

8,475

7,567

16,416

9,966

6,450

 

 

 

i)

Travel

1,708

1,488

220

1,796

1,811

-15

 

 

 

ii)

Transportation

1,715

1,997

-282

1,973

1,978

-5

 

 

 

iii)

Insurance

238

129

109

315

154

161

 

 

 

iv)

G.n.i.e.

40

79

-39

61

122

-61

 

 

 

v)

Miscellaneous

12,341

4,782

7,559

12,271

5,901

6,370

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

7,039

415

6,624

7,121

405

6,716

 

 

 

 

Business Services

3,386

2,646

740

3,436

3,300

136

 

 

 

 

Financial Services

509

318

191

716

703

13

 

 

 

 

Communication Services

475

108

367

569

180

389

 

 

b)

Transfers

7,170

289

6,881

6,218

361

5,857

 

 

 

i)

Official

69

82

-13

119

100

19

 

 

 

ii)

Private

7,101

207

6,894

6,099

261

5,838

 

 

c)

Income

1,722

3,657

-1,935

2,232

4,270

-2,038

 

 

 

i)

Investment Income

1,659

3,461

-1,802

2,160

4,042

-1,882

 

 

 

ii)

Compensation of Employees

63

196

-133

72

228

-156

Total Current Account (I+II)

54,597

59,034

-4,437

57,567

63,314

-5,747

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

34,299

33,067

1,232

22,485

18,219

4,266

 

 

a)

Foreign Direct Investment (i+ii)

3,477

1,739

1,738

4,545

2,429

2,116

 

 

 

i)

In India

3,413

8

3,405

4,400

2

4,398

 

 

 

 

Equity

1,946

8

1,938

2,886

2

2,884

 

 

 

 

Reinvested Earnings

1,457

1,457

1,457

1,457

 

 

 

 

Other Capital

10

10

57

57

 

 

 

ii)

Abroad

64

1,731

-1,667

145

2,427

-2,282

 

 

 

 

Equity

64

1,189

-1,125

145

1,868

-1,723

 

 

 

 

Reinvested Earnings

269

-269

269

-269

 

 

 

 

Other Capital

273

-273

290

-290

 

 

b)

Portfolio Investment

30,822

31,328

-506

17,940

15,790

2,150

 

 

 

i)

In India

30,801

31,327

-526

17,929

15,789

2,140

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

29,540

31,327

-1,787

17,469

15,789

1,680

 

 

 

 

GDRs/ADRs

1,261

1261

460

460

 

 

 

ii)

Abroad

21

1

20

11

1

10

 

2.

Loans (a+b+c)

11,499

6,288

5,211

11,228

6,446

4,782

 

 

a)

External Assistance

577

526

51

788

449

339

 

 

 

i)

By India

5

8

-3

5

8

-3

 

 

 

ii)

To India

572

518

54

783

441

342

 

 

b)

Commercial Borrowings

5,051

1,073

3,978

2,680

920

1,760

 

 

 

i)

By India

87

223

-136

114

170

-56

 

 

 

ii)

To India

4,964

850

4,114

2,566

750

1,816

 

 

c)

Short Term To India

5,871

4,689

1,182

7,760

5,077

2,683

 

 

 

i)

Suppliers’ Credit >180 days & Buyers’ Credit

5,082

4,689

393

6,579

5,077

1,502

 

 

 

ii)

Suppliers’ Credit up to 180 days

789

789

1,181

1,181

 

3.

Banking Capital (a+b)

9,909

4,848

5,061

5,754

7,472

-1,718

 

 

a)

Co

mmercial Banks

9,837

4,848

4,989

5,754

7,428

-1,674

 

 

 

i)

Assets

5,257

1,877

3,380

1,568

3,553

-1,985

 

 

 

ii)

Liabilities

4,580

2,971

1,609

4,186

3,875

311

 

 

 

 

of which: Non-Resident Deposits

4,246

2,944

1,302

4,185

3,277

908

 

 

b)

Others

72

72

44

–44

 

4.

Rupee Debt Service

67

-67

 

5.

Other Capital

342

1,054

-712

1,084

554

530

Total Capital Account (1 to 5)

56,049

45,324

10,725

40,551

32,691

7,860

C.

Errors & Omissions

91

91

157

157

D.

Overall Balance
(Total Current Account, Capital Account
and Errors & Omissions (A+B+C))

110,737

104,358

6,379

98,275

96,005

2,270

E.

Monetary Movements (i+ii)

6,379

-6,379

2,270

-2,270

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves (Increase – / Decrease +)

6,379

-6,379

2,270

-2,270


Statement I : India's Overall Balance of Payments (Contd.)

(US$ million)

Item

Oct-Dec 2006

Jan-Mar 2007

Credit

Debit

Net

Credit

Debit

Net

1

20

21

22

23

24

25

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

30,824

47,257

-16,433

35,700

48,083

-12,383

 

II.

Invisibles (a+b+c)

29,704

16,875

12,829

35,054

18,448

16,606

 

 

a)

Services

18,451

12,371

6,080

22,871

13,499

9,372

 

 

 

i)

Travel

2,621

1,638

983

2,998

1,747

1,251

 

 

 

ii)

Transportation

2,092

2,102

-10

2,194

1,991

203

 

 

 

iii)

Insurance

288

201

87

354

158

196

 

 

 

iv)

G.n.i.e.

87

97

-10

65

105

-40

 

 

 

v)

Miscellaneous

13363

8,333

5,030

17,260

9,498

7,762

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

7,602

684

6,918

9,538

763

8,775

 

 

 

 

Business Services

3,690

4,267

–577

4,032

5,653

-1,621

 

 

 

 

Financial Services

828

647

181

1,053

1,323

-270

 

 

 

 

Communication Services

597

239

358

621

269

352

 

 

b)

Transfers

8,961

333

8,628

9,121

408

8,713

 

 

 

i)

Official

287

89

198

160

110

50

 

 

 

ii)

Private

8,674

244

8,430

8,961

298

8,663

 

 

c)

Income

2,292

4,171

-1,879

3,062

4,541

-1,479

 

 

 

i)

Investment Income

2,193

3,936

-1,743

2,914

4,249

-1,335

 

 

 

ii)

Compensation of Employees

99

235

-136

148

292

-144

Total Current Account (I+II)

60,528

64,132

-3,604

70,754

66,531

4,223

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

38,646

32,179

6,467

37,780

34,992

2,788

 

 

a)

Foreign Direct Investment (i+ii)

10,008

7,110

2,898

5,560

4,619

941

 

 

 

i)

In India

9,855

7

9,848

5,158

70

5,088

 

 

 

 

Equity

8,203

7

8,196

3,446

70

3,376

 

 

 

 

Reinvested Earnings

1,457

1,457

1,457

1,457

 

 

 

 

Other Capital

195

195

255

255

 

 

 

ii)

Abroad

153

7,103

-6,950

402

4,549

-4,147

 

 

 

 

Equity

153

6,454

-6,301

402

3,857

-3,455

 

 

 

 

Reinvested Earnings

269

-269

269

-269

 

 

 

 

Other Capital

380

-380

423

-423

 

 

b)

Portfolio Investment

28,638

25,069

3,569

32,220

30,373

1,847

 

 

 

i)

In India

28,625

25,063

3,562

32,179

30,351

1,828

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

28418

25063

3355

30329

30351

-22

 

 

 

 

GDRs/ADRs

207

207

1848

1848

 

 

 

ii)

Abroad

13

6

7

41

22

19

 

2.

Loans (a+b+c)

14,731

8,250

6,481

17,184

9,168

8,016

 

 

a)

External Assistance

1,113

494

619

1,289

523

766

 

 

 

i)

By India

5

8

-3

5

8

-3

 

 

 

ii)

To India

1,108

486

622

1,284

515

769

 

 

b)

Commercial Borrowings

5,418

1,369

4,049

7,734

1,418

6,316

 

 

 

i)

By India

425

345

80

228

-228

 

 

 

ii)

To India

4,993

1,024

3,969

7,734

1,190

6,544

 

 

c)

Short Term To India

8,200

6,387

1,813

8,161

7,227

934

 

 

 

i)

Suppliers’ Credit >180 days & Buyers’ Credit

5,660

6,387

-727

8,161

6,022

2,139

 

 

 

ii)

Suppliers’ Credit up to 180 days

2,540

2,540

1,205

-1,205

 

3.

Banking Capital (a+b)

7,160

10,273

-3,113

14,386

12,703

1,683

 

 

a)

Commercial Banks

6,944

10,239

-3,295

14,264

12,703

1,561

 

 

 

i)

Assets

556

4,530

-3,974

7,085

8,000

–915

 

 

 

ii)

Liabilities

6,388

5,709

679

7,179

4,703

2,476

 

 

 

of which: Non-Resident Deposits

6,325

4,862

1,463

5,158

4,510

648

 

 

b)

Others

216

34

182

122

122

 

4.

Rupee Debt Service

2

-2

93

-93

 

5.

Other Capital

1,976

994

982

4,828

1,419

3,409

Total Capital Account (1 to 5)

62,513

51,698

10,815

74,178

58,375

15,803

C.

Errors & Omissions

294

294

426

426

D.

Overall Balance
(Total Current Account, Capital Account
and Errors & Omissions (A+B+C))

123,335

115,830

7,505

145,358

124,906

20,452

E.

Monetary Movements (i+ii)

7,505

–7,505

20,452

-20,452

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves (Increase – / Decrease +)

7,505

–7,505

20,452

-20,452


Statement I : India's Overall Balance of Payments (Contd.)

(US$ million)

Item

Apr-Jun 2007

Jul-Sep 2007

Credit

Debit

Net

Credit

Debit

Net

1

26

27

28

29

30

31

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

36,601

56,348

–19,747

38,429

59,904

-21,475

 

II.

Invisibles (a+b+c)

29,921

14,706

15,215

34,442

17,224

17,218

 

 

a)

Services

18,931

9,926

9,006

21,016

11,598

9,418

 

 

 

i)

Travel

2,088

1,906

182

2,248

2,047

201

 

 

 

ii)

Transportation

1,953

2,526

–573

2,091

2,559

-468

 

 

 

iii)

Insurance

373

185

188

341

284

57

 

 

 

iv)

G.n.i.e.

94

110

-16

68

128

-60

 

 

 

v)

Miscellaneous

14,424

5,199

9,225

16,267

6,580

9,687

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

8,836

679

8,157

9,050

801

8,248

 

 

 

 

Business Services

3,758

3,222

536

3,894

3,537

357

 

 

 

 

Financial Services

528

449

79

916

702

215

 

 

 

 

Communication Services

513

231

282

613

180

433

 

 

b)

Transfers

8,628

432

8,196

9,708

408

9,300

 

 

 

i)

Official

153

165

-11

158

112

46

 

 

 

ii)

Private

8,475

267

8,208

9,550

296

9,254

 

 

c)

Income

2,362

4,349

-1,987

3,718

5,218

-1,500

 

 

 

i)

Investment Income

2,279

4,151

-1,871

3,608

4,920

-1,312

 

 

 

ii)

Compensation of Employees

83

198

-116

110

298

-188

Total Current Account (I+II)

66,523

71,054

-4,532

72,871

77,128

-4,257

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

43,173

32,757

10,416

54,343

41,177

13,166

 

 

a)

Foreign Direct Investment (i+ii)

8,409

5,535

2,874

5,640

3,374

2,266

 

 

 

i)

In India

7,616

20

7,595

4,865

19

4,847

 

 

 

 

Equity

5,574

20

5,553

2,822

19

2,803

 

 

 

 

Reinvested Earnings

1,920

1,920

1,920

1,920

 

 

 

 

Other Capital

122

122

124

124

 

 

 

ii)

Abroad

793

5,514

-4,721

774

3,355

-2,581

 

 

 

 

Equity

793

4,758

-3,965

774

2,515

-1,741

 

 

 

 

Reinvested Earnings

271

-271

271

-271

 

 

 

 

Other Capital

485

-485

569

-569

 

 

b)

Portfolio Investment

34,764

27,222

7,542

48,704

37,803

10,900

 

 

 

i)

In India

34,706

27,216

7,490

48,698

37,781

10,918

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

34,305

27,216

7,089

46,199

37,781

8,418

 

 

 

 

GDRs/ADRs

316

316

2,477

2,477

 

 

 

ii)

Abroad

58

6

52

5

23

-17

 

2.

Loans (a+b+c)

16,740

7,593

9,147

20,008

10,428

9,580

 

 

a)

External Assistance

731

491

241

983

515

468

 

 

 

i)

By India

6

7

-1

6

7

-1

 

 

 

ii)

To India

726

484

242

977

508

469

 

 

b)

Commercial Borrowings

8,282

1,338

6,944

6,288

2,071

4,217

 

 

 

i)

By India

359

345

14

443

503

-60

 

 

 

ii)

To India

7,923

993

6,930

5,845

1,568

4,277

 

 

c)

Short Term To India

7,726

5,764

1,962

12,737

7,842

4,895

 

 

 

i)

Suppliers’ Credit >180 days & Buyers’ Credit

6,883

5,764

1,119

11,012

7,842

3,170

 

 

 

ii)

Suppliers’ Credit up to 180 days

843

843

1,725

1,725

 

3.

Banking Capital (a+b)

8,561

9,479

-918

13,714

7,070

6,643

 

 

a)

Commercial Banks

8,561

9,473

-913

13,690

7,000

6,690

 

 

 

i)

Assets

2,543

2,861

-318

4,404

358

4,046

 

 

 

ii)

Liabilities

6,017

6,612

–595

9,286

6,642

2,645

 

 

 

 

of which: Non-Resident Deposits

5,252

5,699

-447

6,975

6,606

369

 

 

b)

Others

6

-6

24

71

-47

 

4.

Rupee Debt Service

43

-43

2

-2

 

5.

Other Capital

2,822

5,726

-2,904

9,025

5,188

3,837

Total Capital Account (1 to 5)

71,296

55,598

15,698

97,090

63,866

33,224

C.

Errors & Omissions

34

34

269

269

D.

Overall Balance
(Total Current Account, Capital Account
and Errors & Omissions (A+B+C))

137,852

126,652

11,200

170,230

140,994

29,236

E.

Monetary Movements (i+ii)

11,200

-11,200

29,236

-29,236

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves (Increase – / Decrease +)

11,200

-11,200

29,236

-29,236


Statement I : India's Overall Balance of Payments (Contd.)

(US$ million)

Item

Oct-Dec 2007

 

Jan-Mar 2008

Credit

Debit

Net

Credit

Debit

Net

1

32

33

34

35

36

37

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

43,054

67,294

-24,241

48,079

74,084

-26,005

 

II.

Invisibles (a+b+c)

39,044

18,314

20,730

45,468

22,901

22,567

 

 

a)

Services

24,109

12,763

11,346

26,286

17,203

9,083

 

 

 

i)

Travel

3395

2,519

876

3,618

2,786

832

 

 

 

ii)

Transportation

2,799

3,043

-245

3,171

3,386

-215

 

 

 

iii)

Insurance

438

261

177

487

314

173

 

 

 

iv)

G.n.i.e.

90

75

16

78

63

15

 

 

 

v)

Miscellaneous

17,387

6,865

10,522

18,932

10,654

8,278

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

9,608

852

8,757

12,806

1,026

11,780

 

 

 

 

Business Services

4,588

4,245

343

4,532

5,549

-1,016

 

 

 

 

Financial Services

882

763

119

891

1,219

-328

 

 

 

 

Communication Services

601

183

418

681

265

416

 

 

b)

Transfers

11,427

493

10,934

14,498

982

13,515

 

 

 

i)

Official

195

121

73

247

116

131

 

 

 

ii)

Private

11,233

372

10,861

14,251

866

13,384

 

 

c)

Income

3,508

5,058

-1,550

4,684

4,715

–31

 

 

 

i)

Investment Income

3,401

4,791

-1,390

4,523

4,383

140

 

 

 

ii)

Compensation of Employees

106

267

-160

161

333

-171

Total Current Account (I+II)

82,097

85,607

-3,511

93,546

96,984

-3,438

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

84,486

69,639

14,847

89,119

84,222

4,897

 

 

a)

Foreign Direct Investment (i+ii)

8,396

6,275

2,120

14,877

6,245

8,633

 

 

 

i)

In India

7,996

43

7,953

14,367

34

14,334

 

 

 

 

Equity

6,022

43

5,978

12,448

26

12,422

 

 

 

 

Reinvested Earnings

1,920

1,920

1,920

1,920

 

 

 

 

Other Capital

54

54

8

-8

 

 

 

ii)

Abroad

400

6,232

-5,832

510

6,211

-5,701

 

 

 

 

Equity

400

5,206

-4,806

510

4,419

-3,909

 

 

 

 

Reinvested Earnings

271

-271

271

-271

 

 

 

 

Other Capital

755

–755

1,521

-1,521

 

 

b)

Portfolio Investment

76,090

63,364

12,727

74,242

77,978

-3,736

 

 

 

i)

In India

75,972

63,345

12,627

74,188

77,952

-3,764

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

72,309

63,345

8,964

73,808

77,952

-4,144

 

 

 

 

GDRs/ADRs

3,473

3,473

379

379

 

 

 

ii)

Abroad

119

19

100

54

26

28

 

2.

Loans (a+b+c)

20,657

10,587

10,070

24,787

12,931

11,856

 

 

a)

External Assistance

1,109

544

565

1,417

577

840

 

 

 

i)

By India

6

7

-1

6

7

-1

 

 

 

ii)

To India

1,103

537

566

1,411

570

841

 

 

b)

Commercial Borrowings

8,427

2,187

6,240

7,296

2,088

5,209

 

 

 

i)

By India

363

384

-21

427

392

35

 

 

 

ii)

To India

8,064

1,803

6,261

6,869

1,696

5,173

 

 

c)

Short Term To India

11,121

7,855

3,266

16,074

10,267

5,807

 

 

 

i)

Suppliers’ Credit >180 days & Buyers’ Credit

10,231

7,855

2,376

14,515

10,267

4,248

 

 

 

ii)

Suppliers’ Credit up to 180 days

890

890

1,559

1,559

 

3.

Banking Capital (a+b)

12,588

12,381

207

20,951

15,124

5,827

 

 

a)

Commercial Banks

12,586

12,029

557

20,899

15,121

5,777

 

 

 

i)

Assets

5,636

3,939

1,698

6,979

5,510

1,469

 

 

 

ii)

Liabilities

6,949

8,090

-1,141

13,920

9,612

4,308

 

 

 

 

of which: Non-Resident Deposits

6,456

7,309

-853

10,718

9,608

1,110

 

 

b)

Others

3

352

-350

52

3

49

 

4.

Rupee Debt Service

76

-76

 

5.

Other Capital

9,407

4,892

4,515

7,976

2,455

5,521

Total Capital Account (1 to 5)

127,138

97,499

29,639

142,833

114,809

28,024

C.

Errors & Omissions

609

 

609

405

 

405

D.

Overall Balance
(Total Current Account, Capital Account
and Errors & Omissions (A+B+C))

209,844

183,106

26,738

236,783

211,794

24,990

E.

Monetary Movements (i+ii)

26,738

-26,738

24,990

-24,990

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves (Increase – / Decrease +)

26,738

-26,738

24,990

-24,990


Statement I : India’s Overall Balance of Payments (Contd.)

(US$ million)

Item

Apr-Jun 2008 PR

Jul-Sep 2008 PR

Credit

Debit

Net

Credit

Debit

Net

1

38

39

40

41

42

43

A.

Current Account

 

 

 

 

 

 

 

I.

Merchandise

57,454

82,731

-25,277

53,630

92,752

-39,121

 

II.

Invisibles (a+b+c)

39,424

17,421

22,003

45,843

19,297

26,546

 

 

a)

Services

23,054

12,344

10,710

27,925

13,525

14,400

 

 

 

i)

Travel

2,504

2,164

341

2,786

2,711

75

 

 

 

ii)

Transportation

2,615

3,328

–713

3,041

3,751

-710

 

 

 

iii)

Insurance

350

227

123

377

306

71

 

 

 

iv)

G.n.i.e.

130

110

19

81

95

-14

 

 

 

v)

Miscellaneous

17,455

6,515

10,940

21,640

6,662

14,978

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

Software Services

12,081

844

11,237

12,120

935

11,185

 

 

 

 

Business Services

3,564

3,217

346

4,846

4,034

812

 

 

 

 

Financial Services

615

620

-5

1,673

966

707

 

 

 

 

Communication Services

510

227

284

740

296

444

 

 

b)

Transfers

12,797

654

12,143

13,773

831

12,942

 

 

 

i)

Official

148

107

40

51

97

-46

 

 

 

ii)

Private

12,649

547

12,102

13,722

734

12,988

 

 

c)

Income

3,573

4,422

-849

4,145

4,941

-796

 

 

 

i)

Investment Income

3,418

4,094

-676

3,855

4,610

-755

 

 

 

ii)

Compensation of employees

155

328

-174

290

331

-41

Total Current Account (I+II)

96,878

100,152

-3,274

99,474

112,049

-12,575

B.

Capital Account

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

52,901

48,144

4,757

51,777

48,185

3,591

 

 

a)

Foreign Direct Investment (i+ii)

12,134

3,170

8,964

9,146

4,244

4,903

 

 

 

i)

In India

11,898

21

11,876

8,831

52

8,778

 

 

 

 

Equity

10,240

21

10,218

7,304

52

7,251

 

 

 

 

Reinvested Earnings

1,492

1,492

1,492

1,492

 

 

 

 

Other Capital

166

166

35

35

 

 

 

ii)

Abroad

236

3,148

-2,912

316

4,191

-3,876

 

 

 

 

Equity

236

2,346

-2,111

316

3,426

-3,111

 

 

 

 

Reinvested Earnings

271

-271

271

-271

 

 

 

 

Other Capital

531

-531

494

-494

 

 

b)

Portfolio Investment

40,768

44,975

-4,207

42,630

43,942

-1,311

 

 

 

i)

In India

40,745

44,923

-4,177

42,618

43,919

-1,302

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

FIIs

39,746

44,923

-5,177

42,482

43,919

-1,437

 

 

 

 

GDRs/ADRs

999

999

136

136

 

 

 

ii)

Abroad

22

52

-29

13

22

-10

 

2.

Loans (a+b+c)

15,952

9,618

6,333

16,276

13,669

2,607

 

 

a)

External Assistance

909

559

351

1,095

577

518

 

 

 

i)

By India

6

8

-2

6

8

-2

 

 

 

ii)

To India

903

550

353

1,089

569

521

 

 

b)

Commercial Borrowings

2,760

1,281

1,479

3,572

1,885

1,687

 

 

 

i)

By India

403

190

213

532

138

393

 

 

 

ii)

To India

2,357

1,090

1,267

3,040

1,747

1,294

 

 

c)

Short Term to India

12,282

7,779

4,503

11,609

11,207

402

 

 

 

i)

Suppliers’ Credit > 180 days & Buyers’ Credit

9,256

7,779

1,477

11,609

9,766

1,843

 

 

 

ii)

Suppliers’ Credit up to 180 days

3,026

3,026

1,441

-1,441

 

3.

Banking Capital (a+b)

21,987

19,291

2,696

16,360

14,086

2,275

 

 

a)

Commercial Banks

21,987

19,140

2,847

16,360

14,083

2,277

 

 

 

i)

Assets

11,457

10,533

924

6,596

5,154

1,442

 

 

 

ii)

Liabilities

10,530

8,607

1,923

9,764

8,929

835

 

 

 

 

of which :Non-Resident Deposits

9,098

8,284

814

9,176

8,917

259

 

 

b)

Others

151

-151

3

–3

 

4.

Rupee Debt Service

30

-30

3

-3

 

5.

Other Capital

3,559

12,463

-8,904

5,595

6,967

-1,372

Total Capital Account (1 to 5)

94,399

89,546

4,853

90,008

82,909

7,099

C.

Errors & Omissions

656

656

742

742

D.

Overall Balance
(Total Current Account, Capital Account and Errors & Omissions (A+B+C))

191,933

189,698

2,235

190,224

194,958

-4,734

E.

Monetary Movements (i+ii)

2,235

-2,235

4,734

4,734

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves ( Increase – / Decrease +)

2,235

-2,235

4,734

4,734


Statement I : India’s Overall Balance of Payments (Contd.)

(US$ million)

Item

Oct-Dec 2008 PR

Jan-Mar 2009 PR

Apr-Jun 2009 PR

Credit

Debit

Net

Credit

Debit

Net

Credit

Debit

Net

1

44

45

46

47

48

49

50

51

52

A.

Current Account

 

 

 

 

 

 

 

 

 

 

I.

Merchandise

39,436

73,484

–34,049

38,481

58,685

-20,204

38,789

64,804

-26,016

 

II.

Invisibles (a+b+c)

41,139

18,757

22,381

37,128

18,137

18,992

36,462

16,440

20,022

 

 

a)

Services

26,950

13,099

13,851

23,749

13,078

10,670

20,168

11,070

9,098

 

 

 

i)

Travel

2,924

1,946

979

2,680

2,606

74

2,286

2,004

282

 

 

 

ii)

Transportation

2,713

3,241

-528

2,916

2,499

416

2,490

2,777

-287

 

 

 

iii)

Insurance

344

268

77

348

329

18

387

314

73

 

 

 

iv)

G.n.i.e.

97

233

-136

81

355

-273

100

103

–3

 

 

 

v)

Miscellaneous

20,872

7,412

13,460

17,724

7,289

10,435

14,905

5,872

9,033

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

 

 

 

Software Services

11,274

580

10,694

10,825

455

10,370

10,764

391

10,373

 

 

 

 

Business Services

4,185

3,568

618

3,850

4,616

-766

2,586

3,865

-1,278

 

 

 

 

Financial Services

889

740

150

771

633

138

1,116

928

189

 

 

 

 

Communication Services

493

257

236

429

308

121

418

312

106

 

 

b)

Transfers

10,997

845

10,151

9,980

419

9,562

13,344

466

12,878

 

 

 

i)

Official

285

98

187

161

111

50

46

107

-61

 

 

 

ii)

Private

10,712

748

9,964

9,820

308

9,512

13,298

360

12,939

 

 

c)

Income

3,192

4,813

-1,621

3,399

4,640

-1,240

2,951

4,904

-1,953

 

 

 

i)

Investment Income

3,000

4,475

-1,475

3,210

4,328

-1,118

2,723

4,566

-1,843

 

 

 

ii)

Compensation of employees

192

338

-146

189

312

-123

227

338

-110

Total Current Account (I+II)

80,574

92,241

-11,668

75,609

76,821

-1,212

75,251

81,244

-5,993

B.

Capital Account

 

 

 

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

33,164

38,539

-5,374

27,073

26,580

493

48,430

33,136

15,294

 

 

a)

Foreign Direct Investment (i+ii)

6,567

6,121

446

8,414

5,229

3,185

9,805

2,779

7,025

 

 

 

i)

In India

6,356

29

6,327

8,073

63

8,010

9,680

29

9,651

 

 

 

 

Equity

4,109

29

4,080

6,322

63

6,259

7,401

29

7,372

 

 

 

 

Reinvested Earnings

1,721

1,721

1,721

1,721

1,915

1,915

 

 

 

 

Other Capital

526

526

31

31

364

364

 

 

 

ii)

Abroad

210

6,092

-5,881

341

5,166

-4,825

125

2,750

-2,626

 

 

 

 

Equity

210

4,489

-4,279

341

4,407

-4,066

125

2,053

-1,928

 

 

 

 

Reinvested Earnings

271

-271

271

-271

271

-271

 

 

 

 

Other Capital

1,331

-1,331

488

-488

426

-426

 

 

b)

Portfolio Investment

26,598

32,418

-5,820

18,658

21,350

-2,692

38,625

30,357

8,268

 

 

 

i)

In India

26,568

32,355

–5,786

18,580

21,169

-2,588

38,602

30,332

8,270

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

 

 

 

FIIs

26,561

32,355

-5,794

18,560

21,169

-2,609

38,559

30,332

8,227

 

 

 

 

GDRs/ADRs

7

7

20

20

43

43

 

 

 

ii)

Abroad

29

63

-34

78

182

-104

23

25

-2

 

2.

Loans (a+b+c)

15,795

15,247

548

14,104

14,924

-820

12,921

14,741

-1,820

 

 

a)

External Assistance

1,654

663

992

1,383

606

777

821

737

84

 

 

 

i)

By India

6

8

-2

6

8

-2

13

116

-103

 

 

 

ii)

To India

1,649

655

994

1,377

598

779

808

620

188

 

 

b)

Commercial Borrowings

5,426

1,648

3,778

3,487

2,490

997

1,974

2,416

-441

 

 

 

i)

By India

662

148

514

399

306

93

244

333

-89

 

 

 

ii)

To India

4,763

1,500

3,263

3,087

2,184

904

1,731

2,083

-352

 

 

c)

Short Term to India

8,715

12,936

-4,221

9,234

11,828

-2,594

10,126

11,589

-1,463

 

 

 

i)

Suppliers’ Credit > 180 days & Buyers’ Credit

8,715

10,357

-1,642

9,234

10,450

-1,216

10,126

9,590

536

 

 

 

ii)

Suppliers’ Credit up to 180 days

2,579

-2,579

1,378

-1,378

1,999

-1,999

 

3.

Banking Capital (a+b)

14,830

19,786

–4,956

12,030

15,290

-3,260

15,577

18,942

-3,365

 

 

a)

Commercial Banks

14,827

19,355

-4,528

11,919

15,290

–3,371

15,577

18,704

-3,127

 

 

 

i)

Assets

5,192

7,541

-2,349

2,578

5,498

-2,920

4,368

6,946

-2,578

 

 

 

ii)

Liabilities

9,636

11,814

-2,178

9,341

9,792

-451

11,209

11,758

–549

 

 

 

 

of which :Non-Resident Deposits

9,543

8,501

1,042

9,331

7,155

2,176

11,172

9,354

1,817

 

 

b)

Others

2

431

-429

111

111

238

-238

 

4.

Rupee Debt Service

68

-68

23

–23

 

5.

Other Capital

4,861

1,193

3,668

6,164

1,101

5,063

297

4,427

–4,131

Total Capital Account (1 to 5)

68,650

74,764

-6,114

59,370

57,962

1,408

77,225

71,270

5,955

C.

Errors & Omissions

100

-100

104

104

153

153

D.

Overall Balance
(Total Current Account, Capital Account
and Errors & Omissions (A+B+C))

149,224

167,105

-17,881

135,083

134,783

300

152,629

152,514

115

E.

Monetary Movements (i+ii)

17,881

17,881

300

-300

115

-115

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves ( Increase – / Decrease +)

17,881

17,881

300

-300

115

–115


Statement I : India’s Overall Balance of Payments (Concld.)

(US$ million)

Item

Jul-Sep 2009 P

April-Sept 2008 PR

April-Sept 2009 P

Credit

Debit

Net

Credit

Debit

Net

Credit

Debit

Net

1

53

54

55

56

57

58

59

60

61

A.

Current Account

 

 

 

 

 

 

 

 

 

 

I.

Merchandise

42,350

74,552

-32,201

111,085

175,483

-64,398

81,139

139,356

-58,217

 

II.

Invisibles (a+b+c)

38,906

19,330

19,576

85,267

36,718

48,549

75,368

35,770

39,599

 

 

a)

Services

19,889

13,616

6,273

50,979

25,870

25,110

40,057

24,686

15,371

 

 

 

i)

Travel

2,519

2,393

126

5,290

4,874

416

4,805

4,397

408

 

 

 

ii)

Transportation

2,566

2,221

346

5,656

7,079

-1,422

5,056

4,998

58

 

 

 

iii)

Insurance

384

341

43

727

533

194

771

655

116

 

 

 

iv)

G.n.i.e.

100

130

-29

211

206

5

200

232

-32

 

 

 

v)

Miscellaneous

14,320

8,532

5,787

39,095

13,177

25,917

29,225

14,404

14,820

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

 

 

 

Software Services

10,645

438

10,207

24,201

1,778

22,423

21,409

829

20,580

 

 

 

 

Business Services

2,504

4,612

-2,109

8,410

7,251

1,159

5,090

8,477

-3,387

 

 

 

 

Financial Services

732

1,135

-403

2,288

1,586

702

1,849

2,062

-214

 

 

 

 

Communication Services

307

313

-6

1,250

523

727

725

625

100

 

 

b)

Transfers

14,268

566

13,702

26,570

1,485

25,085

27,612

1,032

26,580

 

 

 

i)

Official

51

105

-54

199

204

-6

97

212

-115

 

 

 

ii)

Private

14,217

460

13,757

26,371

1,281

25,091

27,515

820

26,695

 

 

c)

Income

4,749

5,148

-399

7,718

9,363

-1,646

7,700

10,052

-2,353

 

 

 

i)

Investment Income

4,544

4,791

-248

7,273

8,704

-1,431

7,267

9,358

-2,090

 

 

 

ii)

Compensation of employees

205

357

-152

444

659

-215

433

695

-262

Total Current Account (I+II)

81,256

93,881

-12,625

196,352

212,201

-15,849

156,507

175,126

-18,618

B.

Capital Account

 

 

 

 

 

 

 

 

 

 

1.

Foreign Investment (a+b)

55817

39023

16794

104,678

96,329

8,349

104,248

72,160

32,088

 

 

a)

Foreign Direct Investment (i+ii)

11457

4341

7116

21,280

7,413

13,867

21,262

7,120

14,142

 

 

 

i)

In India

11362

37

11326

20,728

74

20,655

21,042

65

20,977

 

 

 

 

Equity

8641

37

8604

17,543

74

17,469

16,042

65

15,977

 

 

 

 

Reinvested Earnings

1915

1915

2,985

2,985

3,831

3,831

 

 

 

 

Other Capital

806

806

200

200

1,169

1,169

 

 

 

ii)

Abroad

95

4304

-4209

551

7,339

-6,788

220

7,055

-6,835

 

 

 

 

Equity

95

2614

-2519

551

5,773

-5,221

220

4,667

-4,447

 

 

 

 

Reinvested Earnings

271

-271

542

-542

542

-542

 

 

 

 

Other Capital

1419

-1419

1,024

-1,024

1,846

-1,846

 

 

b)

Portfolio Investment

44360

34683

9678

83,398

88,916

-5,518

82,985

65,040

17,946

 

 

 

i)

In India

44356

34655

9701

83,363

88,842

-5,479

82,959

64,987

17,972

 

 

 

 

of which

 

 

 

 

 

 

 

 

 

 

 

 

 

FIIs

41693

34655

7038

82,228

88,842

-6,614

80,252

64,987

15,265

 

 

 

 

GDRs/ADRs

2664

2664

1,135

1,135

2,707

2,707

 

 

 

ii)

Abroad

4

28

-24

35

74

-39

27

53

-26

 

2.

Loans (a+b+c)

15997

13479

2518

32,228

23,287

8,941

28,918

28,220

698

 

 

a)

External Assistance

1237

750

487

2,004

1,135

869

2,057

1,486

571

 

 

 

i)

By India

13

116

-103

12

17

-5

26

233

-207

 

 

 

ii)

To India

1224

633

590

1,992

1,119

874

2,031

1,253

778

 

 

b)

Commercial Borrowings

3194

2008

1186

6,332

3,166

3,166

5,168

4,424

745

 

 

 

i)

By India

206

215

-9

935

329

606

449

548

-98

 

 

 

ii)

To India

2988

1793

1195

5,397

2,837

2,560

4,719

3,876

843

 

 

c)

Short Term to India

11567

10721

845

23,892

18,986

4,906

21,692

22,310

-618

 

 

 

i)

Suppliers’ Credit > 180 days & Buyers’ Credit

10994

10721

272

20,866

17,545

3,321

21,119

20,311

808

 

 

 

ii)

Suppliers’ Credit up to 180 days

573

573

3,026

1,441

1,585

573

1,999

-1,426

 

3.

Banking Capital (a+b)

16544

12121

4423

38,348

33,377

4,971

32,121

31,063

1,057

 

 

a)

Commercial Banks

16544

11989

4555

38,347

33,223

5,125

32,120

30,693

1,428

 

 

 

i)

Assets

6131

1730

4402

18,054

15,687

2,367

10,499

8,676

1,824

 

 

 

ii)

Liabilities

10412

10259

153

20,294

17,536

2,758

21,621

22,017

-396

 

 

 

 

of which :Non-Resident Deposits

10342

9295

1047

18,274

17,202

1,072

21,513

18,649

2,864

 

 

b)

Others

132

-132

154

-154

370

-370

 

4.

Rupee Debt Service

1

-1

32

-32

23

-23

 

5.

Other Capital

9750

9871

-121

9,154

19,430

-10,276

10,047

14,298

-4,251

Total Capital Account (1 to 5)

98108

74495

23613

184,407

172,455

11,952

175,333

145,765

29,568

C.

Errors & Omissions

1570

-1570

1,398

1,398

1,417

-1,417

D.

Overall Balance
(Total Current Account, Capital Account and Errors & Omissions (A+B+C))

179364

169946

9418

382,157

384,656

-2,499

331,840

322,307

9,533

E.

Monetary Movements (i+ii)

9418

-9418

2,499

2,499

9,533

-9,533

 

i)

I.M.F.

 

ii)

Foreign Exchange Reserves ( Increase – / Decrease +)

9418

-9418

2,499

2,499

9,533

-9,533

 

 

of which: SDR Allocation

5160

-5160

5160

-5160


* Prepared in the Division of International Finance, Department of Economic Analysis and Policy, Reserve Bank of India. This article sets out the developments in India’s Balance of Payments during the second quarter of 2009-10 (July-September 2009) and also incorporates revisions in data for 2007-08, 2008-09 and First Quarter (April-June 2009) of 2009-10.

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