Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: empanelment :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: form 3cd :: VAT Audit
 
 
« Latest Circulars »
 Payment Systems - Next Orbit (Shri R. Gandhi, Deputy Governor - February 20, 2017 - at the launch of Bharat QR Code at Hotel Trident, Mumbai)
 Financing MSMEs: Banks & FinTechs – Competition, Collaboration or Competitive Collaboration? (Shri S. S. Mundra, Deputy Governor – February 20, 2017 – at the NAMCABS Seminar organized by College of Agricultural Banking in Mumbai)
 Issuance of Rupee denominated bonds overseas – Multilateral and Regional Financial Institutions as Investors
 RBI-Formation of twenty one new districts in the State of Telangana - Assignment of Lead Bank Responsibility
 RBI imposes penalty on Janata Urban Co-operative Bank Ltd., Wai, District Satara
 Monitoring of Foreign Investment under PIS in Indian Companies- Incorporation in Ban List–M/s HDFC Bank Ltd.
 Reserve Bank of India seeks Comments on Draft Circular on Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions
 Forward Rate Agreement (FRA) and Interest Rate Swap (IRS) - Withdrawal of Fortnightly return
 RBI-Foreign Investments in India
  RBI cancels the Licence of the Shri Chhatrapati Urban Co-operative Bank Ltd., Pimple Nilakh, Pune, Maharashtra
  Finance Minister meets the Directors of the RBI Central Board

Developments in Indias Balance of Payments during the Fourth Quarter (January-March) of 2014-15
June, 11th 2015

Preliminary data on India’s balance of payments (BoP) for the Fourth quarter (Q4) i.e., January-March of the financial year 2014-15 are presented in Statements I (BPM6 format) and II (old format).

Key Features of India’s BoP in Q4 2014-15

  • On a quarter-over-quarter (q-o-q) basis, India’s current account deficit (CAD) narrowed sharply to US$ 1.3 billion (0.2 per cent of GDP) in Q4 of 2014-15 from US$ 8.3 billion (1.6 per cent of GDP) in Q3; on a year-on-year (y-o-y) basis, however, the CAD was a shade higher (US$ 1.2 billion or 0.2 per cent of GDP in Q4 of 2013-14).

  • The merchandise trade deficit (US$ 31.7 billion during Q4 2014-15) contracted sharply on a q-o-q basis on account of a larger decline in merchandise imports (13.4 per cent) than in merchandise exports (10.4 per cent); however, in terms of y-o-y changes, the trade deficit in Q4 2014-15 widened marginally as exports registered a larger decline (15.4 per cent), than imports (10.4 per cent).

  • The reduction in the CAD in Q4 2014-15 was primarily on account of lower trade deficit as net earnings through services and primary income (profit, dividend & interest) witnessed a decline in q-o-q terms albeit secondary income recorded a marginal increase of 0.4 per cent.

  • Gross private transfer receipts, representing remittances by Indians employed overseas amounted to US$ 17.5, witnessing a marginal increase of 0.4 per cent on q-o-q basis and an increase of 1.2 per cent from the level a year ago.

  • In the financial account, net inflows of foreign direct and portfolio investment were higher on a q-o-q basis, though net loans availed by banks witnessed an outflow US$ 3.5 billion mainly on account of increase in balances of foreign currency assets held abroad by banks.

  • During Q4 of 2014-15, on a BoP basis, there was highest ever net accretion of US$ 30.1 billion to India’s foreign exchange reserves in a single quarter; it was more than double the accretion in the preceding quarter and almost four times of the reserves accrued in Q4 of 2013-14 (Table 1) signifying record increase in capital inflows and dip in current account deficit.

BoP during April-March 2015

  • On a cumulative basis, the overall BoP during 2014-15 showed improvement over the preceding year. Lower CAD, on the back of contraction in trade deficit and marginal improvement in the net invisible earnings, along with a sizable increase in net financial flows enabled a large build-up of reserves.

  • India’s trade deficit narrowed to US$ 144.2 billion in 2014-15 from US$ 147.6 billion in 2013-14. With modest increase in invisibles supported by some improvement in net services receipts, the CAD tracked the trade deficit and shrank to US$ 27.5 billion in 2014-15 (1.3 per cent of GDP) from US$ 32.4 billion (1.7 per cent of GDP) a year ago.

  • Net inflows under the capital and financial account (excluding change in foreign exchange reserves) rose to US$ 89.5 billion during 2014-15 from US$ 48.7 billion in the previous year.

  • There was an accretion to India’s foreign exchange reserves to the tune of US$ 61.4 billion in 2014-15 as compared with US$ 15.5 billion in 2013-14.

  • At the end of March 2015, the level of foreign exchange reserves stood at US$ 341.6 billion.

Table 1: Major Items of India's Balance of Payments
(US$ Billion)
  Jan-Mar 2015 (P) Jan-Mar 2014 (PR) Apr-Mar 2014-15 (P) Apr-Mar 2013-14 (PR)
Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
A. Current Account 131.4 132.7 -1.3 144.4 145.6 -1.2 553.7 581.2 -27.5 551.4 583.7 -32.4
1. Goods 70.8 102.5 -31.7 83.7 114.3 -30.7 316.7 460.9 -144.2 318.6 466.2 -147.6
   Of which:                        
POL 7.7 21.8 -14.1 15.1 42.6 -27.4 55.2 138.3 -83.1 63.2 164.8 -101.6
2. Services 39.8 20.4 19.4 40.6 21.0 19.6 155.4 79.8 75.7 151.5 78.5 73.0
3. Primary Income 3.2 8.8 -5.6 2.8 9.2 -6.4 11.5 36.5 -25.0 11.4 34.4 -23.0
4. Secondary Income 17.5 0.9 16.6 17.3 1.0 16.3 70.0 4.0 66.0 69.9 4.6 65.3
B. Capital Account and Financial Account 149.2 148.9 0.3 127.1 125.1 2.0 548.4 520.3 28.1 523.2 490.0 33.2
Of which:                        
Change in Reserve (Increase (-)/Decrease (+)) 0.0 30.1 -30.1 0.0 7.1 -7.1 0.0 61.4 -61.4 0.0 15.5 -15.5
C. Errors & Omissions (-) (A+B) 1.0   1.0   0.7 -0.7   0.6 -0.6   0.9 -0.9
P: Preliminary; PR: Partially Revised
Note: Total of subcomponents may not tally with aggregate due to rounding off.

Alpana Killawala
Principal Chief General Manager

Press Release : 2014-2015/2616

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions