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

2018-19 2019-20 2020-2021 2021-22 2022-23

Cred Deb Cred Deb Cred Deb Ne Cred Deb Credi Debi
Net Net Net Net
it it it it it it t it it t t
A.
700. - 666. - 276. 12. 837. - 988.
Current 643.7 642.1 302.4 798.7 921.9 -67
9 57.2 7 24.6 8 6 4 38.7 8
Account
- - - - -
517. 477. 191. 618. 721.
1. Goods 337.2 180. 320.4 157. 149.6 41. 429.2 189. 456.1 265
5 9 3 6 4
3 5 7 5 .3
Of
which:
-
P 140. - 129. - 161. - 209. -
46.5 42.8 17.8 44.2 26. 67.5 97.4
OL 9 94.4 4 86.6 8 94.3 4 112
3
2. 126. 128. 46. 107. 143
208 81.9 213.2 84.9 103.2 56.6 254.5 147 325.3 182
Services 1 3 6 5 .3
3. - -
- - -
Primary 21.8 50.7 25.2 52.4 10.4 25.7 15. 25.8 63 27.8 73.8 45.
28.9 27.3 37.3
Income 2 9
4.
100
Secondar 76.6 6.6 70 83.4 8 75.3 39.1 3.1 36 89.3 8.8 80.5 112.6 11.7
.9
y Income
B.
Capital
-
Account 502. 586. 299. 739. 634.
560 57.7 610 23.6 275.5 24. 777.4 38.2 702.9 68
and 3 5 4 2 9
6
Financial
Account
Of
which:

Change
in
Reserves -
- -
(Increase 17.5 14.2 3.3 0 59.5 51.7 51. 16 63.5 30.4 21.2 9.1
59.5 47.5
(- 7
)/Decreas
e (+))

C. Errors
&
-
Omission 0.5 -0.5 1 1 1 1.4 1 0.5 0.9 1.9 -1
0.9
s (-)
(A+B)

P: Preliminary

Note: Total of subcomponents may not tally with aggregate due to rounding off.
Analysis of India’s Current BOP Transaction

The current account balance of payments (BOP), we look at the inflows and outflows of goods,
services, income, and transfers. A positive balance indicates that a country is earning more from
its exports and investments abroad than it is spending on imports and foreign investments. This
can be a sign of a strong economy and competitiveness in international trade. On the other hand, a
negative balance suggests that a country is spending more on imports and foreign investments than
it is earning from exports and investments abroad. This could indicate a trade deficit and potential
challenges in the economy. It's important to monitor the current account BOP to understand a
country's economic health and its position in the global market.

• India’s current account balance (CAB) recorded a marginal surplus of US$ 0.6 billion (0.1
per cent of GDP) in Q4 of 2019-20 as against a deficit of US$ 4.6 billion (0.7 per cent of
GDP) in Q4 of 2018-19 and US$ 2.6 billion (0.4 per cent of GDP) in the preceding
quarter, i.e., Q3 of 2019-20. The surplus in the current account in Q4 of 2019-20 was
primarily on account of a lower trade deficit at US$ 35.0 billion and a sharp rise in net
invisible receipts at US$ 35.6 billion as compared with the corresponding period of last
year.

• India’s current account balance recorded a surplus of US$ 6.5 billion (0.9 per cent of GDP)
in Q1:2021-22 as against a deficit of US$ 8.1 billion (1.0 per cent of GDP) in Q4:2020-
21 and a surplus of US$ 19.1 billion (3.7 per cent of GDP) a year ago [i.e. Q1:2020-21].
The surplus in the current account in Q1:2021-22 was primarily on account of contraction
in the trade deficit to US$ 30.7 billion from US$ 41.7 billion in the preceding quarter, and
an increase in net services receipts. There was an accretion of US$ 31.9 billion to the
foreign exchange reserves (on a BoP basis) as compared with that of US$ 19.8 billion in
Q1:2020-2021
• India’s current account deficit (CAD) decreased to US$ 13.4 billion (1.5 per cent of GDP)
in Q4:2021-22 from US$ 22.2 billion (2.6 per cent of GDP) in Q3:2021-22. The sequential
decline in CAD in Q4:2021-22 was mainly on account of a moderation in trade deficit and
lower net outgo of primary income.

• India’s current account deficit (CAD) decreased to US$ 1.3 billion (0.2 per cent of GDP)
in Q4:2022-23 from US$ 16.8 billion (2.0 per cent of GDP) in Q3:2022-231, and US$ 13.4
billion (1.6 per cent of GDP) a year ago [i.e., Q4:2021-22] The sequential decline in CAD
in Q4:2022-23 was mainly on account of a moderation in the trade deficit to US$ 52.6
billion in Q4:2022-23 from US$ 71.3 billion in Q3:2022-23, coupled with robust services
exports.

• India’s current account balance recorded a deficit of US$ 8.3 billion (1.0 per cent of GDP)
in Q2:2023-24, lower than US$ 9.2 billion (1.1 per cent of GDP) in Q1:2023-24 and US$
30.9 billion (3.8 per cent of GDP) a year ago [i.e., Q2:2022-23] Underlying the lower
current account deficit on a year-on-year (y-o-y) basis in Q2:2023-24 was the narrowing
of merchandise trade deficit to US$ 61.0 billion from US$ 78.3 billion in Q2:2022-23