Developments in Indias Balance of Payments during 1st Quarter April-June 2017-18. Key Features of India’s BoP in Q1 of 2017-18
September 15, 2017
Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1) i.e., April-June 2017-18 are presented in Statements I (BPM6 format) and II (old format).
• India’s current account deficit (CAD) at US$ 14.3 billion (2.4 per cent of GDP) in Q1 of 2017-18 increased sharply from US$ 0.4 billion (0.1 per cent of GDP) in Q1 of 2016 -17 and US$ 3.4 billion (0.6 per cent of GDP) in Q4 of 2016-17.
• The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit (US$ 41.2 billion) brought about by a larger increase in merchandise imports relative to exports.
• Net services receipts increased by 15.7 per cent on a y-o-y basis mainly on the back of a rise in net earnings from travel, construction and other business services.
• Private transfer receipts, mainly representing remittances by Indians employed overseas, at US$ 16.1 billion increased by 5.3 per cent over the corresponding quarter of previous year.
• In the financial account, net foreign direct investment at US$ 7.2 billion in Q1 of 2017-18 almost doubled from its level in Q1 of 2016-17.
• Net portfolio investment recorded substantial inflow of US$ 12.5 billion in Q1 of 2017-18, primarily in the debt segment, as compared with US$ 2.1 billion in Q1 of last year.
• Net receipts on account of non-resident deposits amounted to US$ 1.2 billion in Q1 of 2017-18; this was lower than US$ 1.4 billion a year ago.
• In Q1 of 2017-18, there was an accretion of US$ 11.4 billion to the foreign exchange reserves (on BoP basis) as compared with US$ 7.0 billion in Q1 of 2016-17 (Table 1) and US$ 7.3 billion in the preceding quarter.
Table 1: Major Items of India’s Balance of Payments
(US$ Billion)
April-June 2017 P | April-June 2016 | |||||
Credit | Debit | Net | Credit | Debit | Net | |
A. Current Account | 140.5 | 154.8 | -14.3 | 125.0 | 125.4 | -0.4 |
1. Goods | 73.7 | 114.9 | -41.2 | 66.6 | 90.5 | -23.8 |
Of which: | ||||||
POL | 8.2 | 23.2 | -15.1 | 6.8 | 19.0 | -12.2 |
2. Services | 45.9 | 27.7 | 18.2 | 39.4 | 23.6 | 15.7 |
3. Primary Income | 4.8 | 10.6 | -5.8 | 3.7 | 10.0 | -6.3 |
4. Secondary Income | 16.1 | 1.7 | 14.5 | 15.3 | 1.3 | 14.0 |
B. Capital Account and Financial Account | 155.2 | 141.3 | 14.0 | 129.2 | 129.0 | 0.2 |
Of which: | ||||||
Change in Reserves (Increase (-)/Decrease (+)) | 0.0 | 11.4 | -11.4 | 7.0 | 7.0 | -7.0 |
C. Errors & Omissions (-) (A+B) | 0.4 | 0.2 | ||||
P: Preliminary | ||||||
Note: Total of subcomponents may not tally with aggregate due to rounding off. |
Merely because directors of two companies were common not mean that deposits received was bogus and companies were shell companies…
Application though named as rectification but if tax imposed is not legitimate then it also touches upon the merit –…
Cost of acquisition as on 01.04.1981 taken as per valuer report by reverse indexing of current FMV to be further…
ITAT directed AO to serve notice of hearing both through electronic and physical mode upon the assessee In a recent…
ICAI Intermediate & Foundation Examinations to be held thrice in a year from May/June 2024 ICAI, has decided that from…
Extension of due date for filing of Form No. 10A/10AB under Income-tax Act, 1961 to 30.06.2024 CBDT has further extended…