Key Features of India's BOP (Balance of Payments ) in Q2: 2021-2022

Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2021-22 (Revised) Preliminary data on India’s balance of payments (BoP) for the second quarter (Q2), i.e., July-September 2021-22, are presented in Statements I (BPM6 format) and II (old format). Key Features of India’s BoP in Q2:2021-22 India’s current account balance recorded a deficit of US$ 9.6 billion (1.3 per cent of GDP) in Q2:2021-22 as against a surplus of US$ 6.6 billion (0.9 per cent of GDP) in Q1:2021-22 and US$ 15.3 billion (2.4 per cent of GDP) a year ago [i.e., Q2:2020-21]. The deficit in the current account in Q2:2021-22 was mainly due to widening of trade deficit to US$ 44.4 billion from US$ 30.7 billion in the preceding quarter and an increase in net outgo of investment income. Net services receipts decreased marginally over the previous quarter but increased on a year-on-year (y-o-y) basis, on the back of robust performance of the exports of computer and business services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to US$ 21.1 billion, an increase of 3.7 per cent from their level a year ago. Net outgo from the primary income account, mainly reflecting net overseas investment income payments, increased sequentially as well as on a y-o-y basis. In the financial account, net foreign direct investment recorded an inflow of US$ 9.5 billion, lower than US$ 24.4 billion a year ago. Net foreign portfolio investment was US$ 3.9 billion as compared with US$ 7.0 billion in Q2:2020-21. Net external commercial borrowings to India recorded inflow of US$ 4.1 billion in Q2:2021-22 as against an outflow of US$ 3.7 billion a year ago. Non-resident deposits recorded net outflow of US$ 0.8 billion as against an inflow of US$ 1.9 billion in Q2:2020-21. There was an accretion of US$ 31.2 billion (on a BoP basis) in Q2:2021-22 which also included SDR allocation of US$ 17.86 billion by the International Monetary Fund on August 23, 2021 (Table 1). BoP During April-September 2021 (H1:2021-22) India recorded a current account deficit of 0.2 per cent of GDP in H1:2021-22 as against a surplus of 3.0 per cent in H1:2020-21 on the back of a sharp increase in the trade deficit. Net invisible receipts were higher in H1:2021-22, on account of higher net receipts of services and private transfers. Net FDI inflows at US$ 21.2 billion in H1:2021-22 were lower than US$ 23.9 billion in H1:2020-21. Portfolio investment recorded a net inflow of US$ 4.3 billion in H1:2021-22 as compared with US$ 7.6 billion a year ago. In H1:2021-22, there was an accretion of US$ 63.1 billion to the foreign exchange reserves (on a BoP basis). https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53015 Contact for Online MBA , Mcom and BBA Classes @ 9748882085 Projects , Assignment , Synopsis , Final Report available here !