Forex reserves on BoP basis jump by $11.4 billion in Q1: RBI Report
On nominal terms, the foreign exchange reserves increased by USD 16.6 billion during the first quarter against increase of USD 3.3 billion during the same period last year.
- Sep 15, 2017,
- Updated Sep 15, 2017 8:03 PM IST
The forex reserves on the balance of payment basis rose by USD 11.4 billion in the April-June quarter of fiscal 2018, compared to USD 7 billion in the year-ago quarter, according to the RBI data.
On nominal terms, the foreign exchange reserves increased by USD 16.6 billion during the first quarter against increase of USD 3.3 billion during the same period last year.
There was a decline in capital account balance by USD 14.3 billion against the fall of USD 0.4 billion year ago.
Capital account increased by USD 25.7 billion in the first quarter compared to USD 7.4 billion.
Foreign direct investment surged by USD 7.2 billion in the reporting period from USD 3.9 billion in the same period last year, RBI data showed.
Foreign institutional investment flows increased by USD 11.9 billion in the first quarter from USD 1.2 billion in the same period last year.
External commercial borrowing declined by USD 0.3 billion in the quarter from USD 2 billion in the same period last year, the data showed.
Highlights of India's balance of payments in Q1 of 2017-18, as mentioned by RBI, are:
- India's current account deficit (CAD) at US$ 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.
The forex reserves on the balance of payment basis rose by USD 11.4 billion in the April-June quarter of fiscal 2018, compared to USD 7 billion in the year-ago quarter, according to the RBI data.
On nominal terms, the foreign exchange reserves increased by USD 16.6 billion during the first quarter against increase of USD 3.3 billion during the same period last year.
There was a decline in capital account balance by USD 14.3 billion against the fall of USD 0.4 billion year ago.
Capital account increased by USD 25.7 billion in the first quarter compared to USD 7.4 billion.
Foreign direct investment surged by USD 7.2 billion in the reporting period from USD 3.9 billion in the same period last year, RBI data showed.
Foreign institutional investment flows increased by USD 11.9 billion in the first quarter from USD 1.2 billion in the same period last year.
External commercial borrowing declined by USD 0.3 billion in the quarter from USD 2 billion in the same period last year, the data showed.
Highlights of India's balance of payments in Q1 of 2017-18, as mentioned by RBI, are:
- 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.