India’s Balance of Payments Concepts, Compilation and Recent Scenario EPW Research Foundation* October 2003 * An original note on the subject was published in the Economic and Political Weekly (EPW) of November 13-20, 1993. The same has been thoroughly revised and updated by Ms. Shilpa Jain for publication on the website www.epwrf.res.in
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India’s Balance of PaymentsConcepts, Compilation and Recent Scenario
EPW Research Foundation*October 2003
* An original note on the subject was published in the Economic and Political Weekly (EPW) of November 13-20, 1993.The same has been thoroughly revised and updated by Ms. Shilpa Jain for publication on the website www.epwrf.res.in
Contents
Section No. Title Page No.
List of Exhibits and Appendices i
I Key Concepts 1Current and Capital AccountsMerchandise on FOB/ CIF basisInvisiblesCapital Account
II Sources of BOP Data 5Difference between RBI BOP data and customs dataApparent gaps in BOP data
III An Overview of India’s Balance of Payments 10
Notes 12
List of Text Tables
Text Table
1: India’s Foreign Trade:A Comparison of DGCI & S and RBI Data 6
2: Foreign Exchange Reserves:1950-51 to 2002-03 14
3: Financing of Current Account Deficits:1950-51 to 2002-03 15
4: Balance of Payments-Selected Indicators:1950-51 to 2001-02 17
List of Exhibits and AppendicesTitle Page No.
ExhibitsExhibit
A: Estimation of Invisible Accounts -A Comparison of RBI Classification with the IMF Classification (IMF BOP MANUAL) 7
B: Estimation of Invisible Accounts -A Comparison of RBI Classification with the IMF Classification (IMF BOP Yearbook) 8
AppendicesAppendix
1: Balance of Payments:1950-51 to 1989-90 (Rs. Crore / Dollar Million) 191990-91 to 2002-03 (Rs. Crore) 231990-91 to 2002-03 (US Dollar Million) 26
2: Break-up of Invisibles on Current Account 29(A) Travel Account 35
(B) Transportation Account :(i) 1956-57 to 1989-90 (Rs. Crore) 36(ii) 1990-91 to 2001-02 (Rs. Crore/ Dollar Million) 38
(C) Insurance Account :(i) 1956-57 to 1996-97 (Rs. Crore) 40(ii) 1997-98 to 2001-02 (Rs. Crore/ Dollar Million) 41
(D) Investment Income Account :(i) 1956-57 to 1996-97 (Rs. Crore) 42(ii) 1997-98 to 2001-02 (Rs. Crore/ Dollar Million) 45
(E) Government not included elsewhere Account :(i) 1956-57 to 1989-90 (Rs. Crore) 46(ii) 1990-91 to 2001-02 (Rs. Crore/ Dollar Million) 47
(F) Miscellaneous Account :(i) 1956-57 to 1989-90 (Rs. Crore) 48(ii) 1990-91 to 2001-02 (Rs. Crore/ Dollar Million) 50
(G) Official Transfer Payments Account :(i) 1956-57 to 1989-90 (Rs. Crore) 52(ii) 1990-91 to 2001-02 (Rs. Crore/ Dollar Million) 54
(H) Private Transfer Payments Account :(i) 1956-57 to 1989-90 (Rs. Crore) 55(ii) 1990-91 to 2001-02 (Rs. Crore/ Dollar Million) 57
4: NRI DepositsA Inflows under FCNR and NR(E)RA Accounts 60NRI Deposits Outstanding 61
5: External Transactions as per CSO’s 62National Account Statistics
i
India’s Balance of PaymentsConcepts, Compilation and Recent Scenario
IKey Concepts
A balance of payments statement is essentially a double entry system of record for a given period ofan economy’s two-way international transactions in the form of goods and services, receipts and paymentsof incomes, transfers without quid pro quo and financial claims and liabilities. With a view to standardisingthe concepts and definitions, classificatory schemes and conventions applied in the compilation of balanceof payments statistics by various countries, the International Monetary Fund (IMF) has prescribed a Balanceof Payments Manual1 . India, as in the case of other member countries of the IMF, has adopted the sameas a conceptual and methodological basis for compiling her balance of payments account. However, thereexist some departures from the IMF framework due to the constraints of data availability and to take accountof the country’s institutional structure2.
Principally, the balance of payments (BOP) account records transactions between a resident economicentity and rest of the world. Though the resident status of an individual is conceived in terms of the permanenceof interest within a given territory, the rule of thumb adopted for recognition of such permanence is a stayof one year or more. Tourist and commercial travellers, employees of foreign governments and internationalbodies on a mission of less than one year and seasonal workers from foreign countries are all consideredas residents of the economy in which they normally live. Major exceptions to this are the official diplomaticand consular representatives, members of armed forces and other government personnel of a foreign countrystationed in a given country who are treated (together with their dependents) as non-residents for the countryof their posting or as residents of the country they represent.
Current and Capital Accounts
In BOP accounting, transactions relating to goods, services and income, and current transfers constitutethe current account, while those relating to claims and liabilities of a financial nature and capital transfersand acquisition or disposals of non-produced, non-financial assets which go to finance the deficit on currentaccount, or to absorb its surplus, form the capital account. The sum of these current and capital accounttransactions together constitutes the basic balance on BOP and theoretically it should be finally roundedup. The double-entry accounting should be closed with the help of: a) purchase and repurchase from theIMF essentially as a multilateral agency for the countries’ BOP support, b) allocation of the IMF’s SpecialDrawing Rights (SDRs) intended to supplement the relatively inadequate international reserves and alsoto serve as a principle reserve asset of the international monetary system, and finally, c) the build-up ordraw down of the country’s own reserve assets. Incidentally, the objective of SDRs serving as a principalreserve asset was scuttled in the midst of the controversy regarding the justification or otherwise for additionalreserve assets.
The above is the theoretical position; in reality, due to myriad discrepancies arising from differences intiming, coverage, valuation and possible inaccurate estimation (which also includes clandestine capital flightthrough various devices), the credit side of the double entry accounting does not exactly match the sumof all debit entries. Therefore, the balancing act is performed by an item called “errors and omissions”—a negative sign in it implying an overstatement of receipts and an understatement of payments, generallya combination of both, and the positive sign signifying the reverse. It is very often found that in years oflarge depreciation of the rupee, the “errors and omissions” remain negative.
Merchandise on FOB / CIF basis
The transactions relating to goods, services and income, constituting the current account on the BOP,are functionally classified in two broad categories: merchandise and invisibles. As per the IMF Manual,imports and exports of goods (merchandise) should be presented under free-on-board (FOB basis), thatis, without including freight and insurance costs. Such freight and insurance paid to foreign shipping andair carriers should be treated as an outgo (debit) under the invisible sub-items, transportation and insuranceservices, while that earned by domestic carriers has to be treated as receipts (credit) under the same sub-items. However, the BOP data put out by the Indian authorities (Reserve Bank of India as well as theGovernment of India) make a major departure from the IMF manual in that while they present exportson an FOB basis they set out imports on CIF (cost, insurance and freight) basis on the ground of the natureof data availability, that is, while exports declarations are uniformally on FOB basis, import invoices donot distinguish between the cost of merchandise and freight and insurance. Incidentally, it is found thatmany other countries conduct periodical sample studies of import invoices, which facilitate such a distinctionand estimate the proportion of freight, insurance and other distributive services in the total CIF value ofimports and thus apply the results for deriving the FOB values of total imports also. Besides, the IMF inits Year Book on Balance of Payment Statistics, presenting uniform BOP data for its member countries,publishes India’s BOP with merchandise imports also on a fob basis3 . The IMF apparently has a methodof using global adjustment to the import data for converting c.i.f. into f.o.b. Interestingly, the RBI did conductsuch surveys in the past for converting into fob basis those export invoices which were on c.i.f. or c.i.basis. Apparently a 1948 survey, which indicated that freight and insurance elements constituted of aboutfour per cent of the c.i.f. values of exports, is broadly considered valid for quite some years as per subsequentsurveys4 . Though, since October 1983 the relevant forms specify the fob value of exports the above surveyresults are required to be used to estimate the freight and insurance components (i.e., under, invisibles)now on the given basis of fob value.
Foreign trade data relate to merchandise trade through all the recognized seaport, airports, land customsstations and inland container depots of India. Data on exports, which include re-exports, relate to fob valuesand imports relate to c.i.f. values. Exports are based on the general system of recording, according to whichre-exports relate to Indian merchandise previously imported into India.
The item Non-Monetary Gold Movement has been deleted from invisibles in conformity with IMF Manualon BOP (4th edition) from May 1993 onwards; these entries have been included under merchandise. Similarly,in accordance with the provisions of IMF Manual on BOP (5th edition), gold purchased from the governmentof India by RBI has been excluded from the BOP statistics. Data from the earlier period have been amendedby making suitable adjustments in ‘other capital receipts’ and ‘foreign exchange reserves’. Imports relateto foreign merchandise, whether intended for home consumption, bonding or re-exploration. Trade balanceis defined as the difference between total exports and total imports (both merchandise).
Invisibles
As distinguished from the ‘visibles’ (merchandise) transactions, the invisible account comprises costs ofservices, income and transfer payments (ie, payments and remittances unrequited or without quid pro quoor without any repayment obligations). The IMF manual classifies non-merchandise current account trans-actions into as many as thirteen items and also obtains from the reporting country authorities and publishes(supplemented by its own estimates) in its BOP yearbook fairly disaggregated information on a numberof countries. Exhibit (A) and (B) provides listings of current account transactions as per the IMF manualand as per the BOP yearbook, respectively; these also carry alongside the Indian system of classifications.It is true that many other countries do not possess such detailed data and hence they club certain itemstogether and publish data on fewer heads. In the regular dissemination of BOP data, the Indian authoritiesnow provide the ‘invisibles’ account data under seven broad heads (Appendix 2).
Within the above broad heads, however, the Reserve Bank of India has now begun to provide many moredetails, which may be seen in disaggregated data presented in Appendix 2(A) to 2(H). With a view to
Balance of Payments 2
disseminating more disaggregated data on India’s trade and services, the RBI has published such statisticsseparately for the period 1956-57 to 1998-99 in its monthly bulletins of March and April 1992 and in itscomprehensive publication Balance of Payments: 1948-49 to 1988-89 (July 1993); this practice has beencontinued thereafter on an annual basis. Apart from some broad details presented in Appendix 2A, attemptshave been made to cull out more disaggregated data on invisibles from the above studies which are presentedin eight separate sets in Appendix 2(A) to 2(H). As may be observed from these disaggregated data, Indiahas now begun to provide many more details; earlier income consisted only of investment income whereasnow one more sub-category ‘compensation of employees’ is added, in accordance with the IMF’s Balanceof Payments Manual (5th edition), 1993, under the head ‘income’ with effect from 1997-98. Earlier, theIndian practice was to record ‘compensation of employees’ under the head ‘services-miscellaneous’. Since1990-91, the value of defence related imports are recorded under imports (merchandise debit) with creditsfinancing such imports shown under “loans (external commercial borrowings) to India” in the capital account.Based on the recommendations of a high-level committee in their Reports of Policy Group and TaskForce on External Debt Statistics of India, 1992 (RBI), interest payments on defence debt owed to thegeneral currency area (GCA) are recorded under investment income (debit) and principal repayments underdebit to “Loans (external commercial borrowings) to India”.
The IMF classifies transfers as ‘current transfers’ and ‘capital transfers’. Transfers basically representreceipts and payments without quid pro quo. Current transfers include those of general government (eg,current international cooperation between different governments, payments of current taxes on income andwealth, etc.) and other transfers (eg, workers remittances, premiums-less service charges), and claims onnon-life insurance. Definitionally, capital transfers should include:
1. Transfer of ownership of fixed asset or2. The forgiveness of a liability by a creditor when no counter-part is received in return, or3. A transfer of cash when linked to, or conditional on, the acquisition or disposal of a fixed asset
(eg investment grant) by one or both parties to the transaction.Finally, capital transfer should result in a commensurate change in the stocks of assets of one or both
parties to the transaction. Due to non-availability of data, the RBI is unable to provide such segregationinto current and capital transfers; instead it has segregated transfers into private and official.
Government not included elsewhere represents remittances towards maintenances of foreign embassies,diplomatic missions and international/ regional institutions.
Miscellaneous services encompass communication services, software services, construction services,royalties, copyrights and licence fees, news agency services and others. Because of the emergence of softwareservices as a highly focused and dynamic area of export activity in the 1990s, it is shown as a separatesub-item under ‘Miscellaneous’ since 2000-01.
Investment income transactions are in the form of interest, dividend, profit and others for servicing ofcapital transactions. Investment income receipts comprise interest received on loans to non-residents, dividend/profit received by Indians on foreign investments, reinvested earnings of Indian FDI companies abroad,interest received on debentures, floating rate notes (FRNs), commercial papers (CPs), fixed deposits andfunds held abroad by ADs out of foreign currency loans/export proceeds, payments of taxes by non-residents/refunds of taxes by foreign governments and interest/discount earnings on RBI holding of foreign assets.Investment income payments comprise payment of interest on non-received deposits, payment of intereston loans from non-residents, payment of dividend/profit to non-resident shareholders, reinvested earningsof the FDI companies, payments of interest on debentures, FRNs, CPs, fixed deposits, government securities,charges on SDRs and others.
Even so, while the Indian classification of current transactions is found to be fairly comprehensive, someloss of information in it relating to the following items is noticed:
1. As explained earlier, data on insurance and freight on imports, which would constitute part of theitems transportation and insurance, are in fact included under merchandise.
2. Under the Indian classification, transactions relating to the life insurance business of the Life InsuranceCorporation of India or those relating to the general insurance business of the Indian general insurance
3 Balance of Payments
companies abroad for domestic hazards in those countries are clubbed under the item insurancewhich also covers the insurance of merchandise trade. The IMF classification places this undera separate item called ‘other goods, services and income’.
Expenditures of diplomatic missions in India or those of Indian missions abroad are not presented separatelyin the Indian data, whereas the IMF publishes such data under the head ‘other foreign official, NIE’ evenfor India separately.
Capital Account
Though the IMF manual distinguishes a large number of items under the capital account, India, as in thecase of many other countries, has dovetailed the accounting classification to fit into its own institutionalstructure and analytical needs. Until the end of the 1980s, key sectors distinguished under the capital accountwere: (i) private capital, (ii) banking capital, and (iii) official capital.
Private capital was sub-divided into (i) long-term and (ii) short-term, with loans of original maturity ofone year or less constituting the relevant dividing line. Long-term private capital, as published in the regularBOP data, covered foreign investments (both direct and portfolio), long-term loans, foreign currency deposits(FCNR and NRE) and an estimated portion of the unclassified receipts allocated to capital account. Bankingcapital essentially covered movements in the external financial assets and liabilities of commercial and co-operative banks authorised to deal in foreign exchange. Official capital transactions, other than those withthe IMF and movements in RBI’s holdings of foreign currency assets and monetary gold (SDRs are heldby the government), were classified into (i) loans, (ii) amortisation, and (iii) miscellaneous receipts andpayments. In the data base created here, statistical series on BOP for the period 1950-51 to 1989-90 arein this format (See Appendix 1A). Independent data published by the RBI give disaggregation of FDI byapproval categories and that of portfolio investments by types of flow. In FDI, there are three sourcesof approvals: government [Secretariat of Industrial Approvals (SIA) and Foreign Investment Promotion Board(FIPB)]; RBI; and NRI investments (See Appendix 3B). Likewise, RBI puts out data on NRI depositsunder different categories of deposits (Appendix 4A and 4B).
For the subsequent period, from 1990-91 onwards, the classification adopted is as follows:(i) Foreign investment, which is bifurcated into Foreign Direct Investment (FDI) and portfolio
investment. The FDI in India could be in the form of inflow of investment (credit) and outflowin the form of disinvestments (debit) or abroad in the reverse manner. The portfolio investment5 ,on the other had, comes in the form of Foreign Institutional Investors (FIIs), offshore fundsand Global Depository Receipts (GDRs) and American Depository Receipts (ADRs). The dataon acquisition of shares (acquisition of shares of Indian companies by non-residents under section5 of FEMA, 1999) has been included as part of foreign direct investment since January 1996.
(i) Loans, which are further classified into external assistance, medium and long-term commercialborrowings and short-term borrowings, with loans of original maturity of one-year or lessconstituting the relevant dividing line. The principal repayment of the defence debt to the GeneralCurrency Area (GCA) is shown under the debit to loans (external commercial borrowing toIndia) for the general currency area since 1990-91.
(ii) Banking capital comprises external assets and liabilities of commercial and government banksauthorized to deal in foreign exchange, and movement in balance of foreign central banks andinternational institutions like, World Bank, IDA, ADB and IFC maintained with RBI. An importantcomponent of banking capital is non-resident (NRI) deposits.
(iii) Rupee debt service contains interest payment on, and principal re-payment of, debt for theerstwhile rupee payments area (RPA). (This is done based on the recommendation of high-level committee on balance of payments.)
(iv) Other capital is a residual item and broadly includes delayed exports receipts, funds raisedand held abroad by Indian corporate, India’s subscriptions to international institutions and quotapayments to IMF. Delayed export receipts essentially arises from the leads and lags between
Balance of Payments 4
the physical shipment of goods recorded by the customs and receipt of funds through bankingchannel. It also includes rupee value of gold acquisition by the RBI (monetization of gold).
(v) Movement in Reserves comprises changes in the foreign currency assets held by the RBI andSDR balances held by the government of India. These are recorded after excluding changeson account of valuation. Valuation changes arise because foreign currency assets are expressedin US dollar terms and they include the effect of appreciation/depreciation of non-US currencies(such as Euro, Sterling, Yen and others) held in reserves. Furthermore, this item does not includereserve position with IMF.
As per the earlier classification, institutional character of the Indian creditor/debtor formed the dividingline for a capital account transaction, whereas now it is the functional nature of the capital transactionthat dominates the classification.
FDI to and by India up to 1999-2000 comprised mainly equity capital. In line with international best practices,the coverage of FDI has been expanded since 2000-01 to include, besides equity capital, reinvested earnings(retained earnings of FDI companies) and ‘other direct capital’ (inter-capital debt transactions betweenrelated entities). Data on equity capital include equity of unincorporated bodies. Reinvested earnings forthe latest year (2002-03) are estimated as average of the previous two years as these data are availablewith time-lag of a year. In view of the above revision, FDI data are not comparable with similar data forthe previous years (Appendix 3C). In terms of standard practise of BOP compilation, the above revisionof FDI data would not affect India’s overall position as the accretion to the foreign exchange reserveswould not undergo any change. The composition of BOP, however, would undergo changes. These changesrelate to investment income, external commercial borrowings and ‘errors and omissions’. In case of reinvestedearnings, there is a contra-entry (payments) of equal magnitude under investment income in the currentaccount. ‘Other Capital’ reported as part of FDI inflow has been carved out from the figure reported underexternal commercial borrowings by the same amount. ‘Other Capital’ by Indian companies abroad and equitycapital of unincorporated entities have been adjusted against ‘errors and omissions’ for 2000-01 and 2001-02.
IISources of BOP Data
The compilation of BOP data are considerably facilitated by two important prescriptions under foreignexchange regulations, which are a universal feature in the governance of transactions in foreign exchange,and which therefore have continued in India even after external sector liberalisation and replacement ofthe Foreign Exchange Regulation Act (FERA), 1973 by the Foreign Exchange Management Act (FEMA),1999. The prescriptions are: (i) all foreign exchange transactions are required to be channelled throughthe banking system; and (ii) the authorised dealers (ADs) are required to submit various returns to theRBI on those transactions (RBI 1987).
The compilation is thus done on the basis of such statistical returns submitted by ADs to the RBI. Themost important return is the well-known R returns, which covers export receipts, import payments, andalso non-merchandise transactions (current and capital) beyond a cut-off limit; this cut-off limit prescribedfor the supplementary statement of receipts in respect of purposes other than exports, was varied fromtime to time; it was Rs. 1 lakh and above for some time up to January 2001 but was raised to $ 10,000and above thereafter. These R return schedules, including the supplementary statement of receipts, for non-merchandise transactions are now obtained from about 2,000 AD branches in electronic form. All of theR returns data cover forex transactions including their purpose-wise classification up to and above the cut-off limit referred to above, and for the transactions below the limit, only total amount is given. Therefore,to capture such purpose-wise classification in respect of the balance of forex transactions below the cut-off limit of $10,000 now (about Rs 50,000), a sample survey of unclassified receipts is undertaken on aquarterly basis. Data on a number of what are called non-R return items, i.e, items dealt with directly bythe government such as defence-related purchases and other official transactions, are supplemented fromgovernment sources and major diplomatic missions abroad (Washington, London and Tokyo). Finally, thereare three more other sources which supplement the above BOP data:
5 Balance of Payments
(i) a foreign currency gross provisional return (FCGPR) on capital account transactions including allinvestment flows;
(ii) a BAL statement on balances in NRE deposit accounts; and(iii) information, through fortnightly section 42(2) returns of banks, on their Nostro balances (normally
in credit) and Vostro balances (normally in debt).In addition, there is yet another class of surveys on India’s ‘foreign liabilities and assets’, which has finally
culminated into a more comprehensive survey on international investment position (IIP). Earlier this surveyof foreign assets and liabilities was periodically undertaken to fill the gap in data regarding the capitaltransactions of the private sector; this survey was also used to obtain data on direct investment flows ona non-cash basis such as shares allotted to non-residents against import of plant and equipment or againsttechnical know-how fees, and direct investors’ portion of reinvested earnings. Now, the Indian governmenthas accepted Special Data Dissemination Standards (SDDS)6 prescribed by IMF in the aftermath of thefinancial crisis of 1997-98, according to which, the IIP, amongst others, ‘has become the focus of attentionon account of its comprehensive coverage and the feasibility of assessing the impact of policies on thecomposition of capital flows’ (RBI’s Annual Report, 2002-03, p.112). Under the SDDS, India wascommitted to compile the IIP for the period ending March 2002. Accordingly, the annual IIP of India forthe years March 1997 to March 2002 have been placed on RBI’s website.
Difference between RBI balance of payments data and customs data.
As repeatedly reported by the RBI, a phenomenon in the external trade statistics of India has been thesignificant divergence between the merchandise transactions, particularly on imports, as revealed by thecustoms data compiled by the Directorate General of Commercial Intelligence and Statistics (DGCI andS) and the BOP data published by the RBI on payment basis (see Table 1). Apart from valuation and timingdifferences as between the customs data based on the shipment of goods and the booking of, say, importson payments basis, a major cause for the difference in merchandise imports is that customs (DGCI andS) data do not cover import of defence stores including defence equipment, while the RBI data cover thesame as and when these imports are paid for. Besides, RBI data have a lead in payments in regard toimports under external assistance and commercial borrowings as the RBI records them when the payments
Table 1: IndiaTable 1: IndiaTable 1: IndiaTable 1: IndiaTable 1: India’s Foreign Trade : A Comparison of DGCI & S and RBI Datas Foreign Trade : A Comparison of DGCI & S and RBI Datas Foreign Trade : A Comparison of DGCI & S and RBI Datas Foreign Trade : A Comparison of DGCI & S and RBI Datas Foreign Trade : A Comparison of DGCI & S and RBI Data(Rupees, Crore)
are made to suppliers while the DGCI and S data cover them when the goods arrive in thecountry in accordancewith the recommendations of the report of the technical group on reconciling balance of payments andDGCI and S data sources on merchandise trade. Data on gold and silver brought in by the Indians returningfrom transfer receipts since 1992-93 abroad have been included under import payments with contra entryunder private transfer receipts.
As the data in text Table 1 shows, the differences between the two sources have got widened, particularlyin the latter half of the last decade when defence purchases seem to have got expanded; it is quiet likelythat leads and lags between shipments and payment receipts may have also got widened.
Apparent gaps in balance of payments data:-
1. As pointed out earlier, there is the need to present import data in fob terms and thus give the valuesof freight and insurance under invisibles more accurately.
2. IMF publications classify data on invisibles under 15 heads, whereas Indian BOP is generally reportedunder 7 heads. Now that the RBI has begun collecting substantially more disaggregated data, BOPclassification may be expanded (Exhibit A).
3. RBI was conducting sporadic studies on currency-wise pattern of exports and imports and invisibles.It is hoped that these will be continued and that an analysis of the available data may be undertakenmore regularly such as once in two years.
4. Detailed dissemination of FDI inflows by sectors and by projects is needed. The advisory groupon data dissemination had in fact highlighted this requirement. Currently, the Secretariat of IndustrialApprovals (GoI) publishes in their SIA Newsletter (monthly) census list of FDI approvals with briefdetails on individual proposals and some consolidated data on actual inflows. RBI may attemptpublishing similar data on the progress achieved in actual inflow of FDI and technical collaborations,along with ‘individual profiles’ for major cases of inflows and projects under implementation.
IIIAn Overview of India’s Balance of Payments
Appendix 1(A) to 5 present a detailed account of all the major components of India’s balance of paymentsfor about 53 years since 1950-51. A few special tables amongst them give further details of some importantsub-categories of invisibles and capital transactions. A text Table 2, depicts a profile of end-year foreignexchange reserves including annual transactions with the IMF. A separate table presents ‘rest of the worldaccount’ transactions as tabulated by the Central Statistical Organisation (CSO) in its National AccountsStatistics (Appendix 6). A few analytical tables such as the one on financing of current account deficit(Table 3) and another on selected indicators of BOP (Table 4) are also presented as text tables. Theymake an attempt to provide a perspective of macro analysis that is possible of BOP statistics. Apart fromexports and imports of goods and services, the table on ‘rest of the world account’ provides data on (a)compensation of employees from, and to, the rest of the world; and (b) property and entrepreneurial incomesimilarly from, and to, the rest of the world. The objective of this note is to present these data for useby research scholars and others and not to provide any detailed analysis. However, opportunity is takento make a few observations on what these mass of data reveal essentially as a lead for their users.
First, there has occurred a quantum leap in the proportion of India’s exports in GDP. For over threedecades, merchandise exports had constituted around 4 to 4.5 per cent of GDP but this has jumped toabout 8 to 9 per cent in the 1990s (Table 4 in the text). Further it is revealed that inclusive of exportsof services, the rise in the ratio of goods and services to GDP has been much sharper, from about a rangeof 8-9 per cent to 16-17 per cent . Significantly, the rise in export earnings has been accompanied by similarsizeable increase in imports as percentage of GDP. It must, however, be noted that after a leap forwardin external trade of India until the mid-1990s, the physical trade to GDP ratio has not shown any significantexpansion in the second half of the 1990’s (Graphs 1 and 2), probably pari passu with the sluggish growthof the national economy as a whole. On the other hand, what stands out is the more rapid and continuous
Balance of Payments 10
Export/Import as Percentage of GDP
0
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Exports as % to GDP Imports as % to GDP
Graph 1rise in exports of services as percentage ofGDP from about 2.5-3.5 per cent for abouttwo decades until the early 1990s to 5 percent in 1995-96 and to 7.5 per cent during2001-02.
Secondly, the current account deficit – acrucial macro economic indicator – has faceda chequered trend. As percentage of GDP,it was around 2 per cent during the highinvestment phases of the second and thirdfive-year plan periods (1956-57 to 1965-66)and also during the decade of the 1980s.Interestingly, the 1990s in particular haveshown the lowest relative current accountdeficit so much so that by 2001-02, therehas arisen a current account surplus, whichhas continued in 2002-03 too. Earlier, sucha surplus was experienced in the mid-1970s
Total Merchandise as % to GDP
0
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T otal Merchandise as % to GDP
G raph 2when the national economy had similarlyexperienced an investment famine.
Thirdly, again, in the financing of currentdeficit (Table 3 and Graph 3), there hasoccurred a significant change in the relativeimportance of various sources of finance inthis respect. While the role of externalassistance has declined in the 1990s, theimportance of private investment flows, NRIdeposits and commercial borrowings has in-creased. Separate information provided onthe first two items of investment flows [Ap-pendix 3A and 3B and 3C] and NRI deposits(Appendix 4A and 4B) speak of their impor-
Financing CAD
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E xternal assistance C om m ercia l B orrow ingsFore ign Investm ents N R I D eposits
Ext Ass
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For Inv
NR I D eptance in absolute numbers.Finally, above all, it is the phenomenal
expansion in foreign currency assets in the1990s that stands out. As indicated in thetext Table 2, the country’s foreign exchangereserves had generally remained low afterthe sterling balances were brought down inthe early phase of planning. The years whenthe reserves formed more than three months’import requirements, as in the 1970s and theearly 1980s, were periods of considerablerecessionary conditions in Indian industry;in the early 1980s the reserves were also
Graph 3
11 Balance of Payments
Symbols and Abbreviations
1. The following symbols have been used throughout the article... = data not available-, 0 = nil or negligible. = Denotes data not available separately and has been clubbed elsewhere.
2. f.o.b. = free on boardc.i.f- cost, insurance and freight.
supported by the IMF drawals.The same phenomena of recession as
well as IMF and other exceptionaldrawings were prevalent in the early1990s; thereafter the foreign exchangereserves began to rise. But, the increasesin reserves that have occurred after1995-96 or thereabout are of a differentgenre. Not only have there been no IMFborrowings (in fact all repurchase ob-ligations have been cleared), therecessionary conditions have not beenas severe as in, for instance, in the1970s. In fact, inflows have been quitesizeable as a result of reduced merchan-dise deficits, rapid increases in privateinward remittances, and higher capitalflows – all of which could not probablyhave been absorbed even if the tempo
Import Cover
0
10000
20000
30000
40000
50000
60000
1970
-71
1971
-72
1972
-73
1973
-74
1974
-75
1975
-76
1976
-77
1977
-78
1978
-79
1979
-80
1980
-81
1981
-82
1982
-83
1983
-84
1984
-85
1985
-86
1986
-87
1987
-88
1988
-89
1989
-90
1990
-91
1991
-92
1992
-93
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
Foreign Exchange Reserves (Rs Crore)
Imp
orts
in M
ont
hs
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Forex Reserves Import Cover
Graph 4
of investment was stepped up.
Notes
1 International Monetary Fund, Balance of Payments Manual, Fourth Edition, 1971.
2 The Reserve Bank of India has compiled and published its own manual setting out the concepts and methodology,the main constitutents of BoP and source of data used. See Reserve Bank of India (1987), Balance of PaymentsCompilation Manual, October, 1987.
3 See International Monetary Fund, Balance of Payments Statistics (various yearbook volumes)
4 See RBI,op cit, pp 21-22.
5 Portfolio investment mainly includes FIIs’ investment, funds raised through GDRs/ADRs by Indian companiesand through offshore funds. Data on investment abroad, hitherto reported, have been split into equity capitaland portfolio investment since 2000-01.
6 A detailed note on the SDDS has been published by the EPW Research Foundation (2003) ; it is : “ InternationalReserve, Foreign Currency Liquidity and External Debt : Data template”, Economic and Political Weekly, September30, 2003.
Balance of Payments 12
13B
alance of Paym
ents
Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03
Foreign Exchange Reserves Transactions with the IMF
Year SDRs Gold Foreign TotalTotalTotalTotalTotal SDRs Gold Foreign TotalTotalTotalTotalTotal Drawings Repur- Out- Drawings Repur- Out- Reserve ReservesCurrency Currency chases standing chases standing Position in termsAssets Assets Repurchase # Repurchase in the of no of
Obligations Obligations Fund months ofImports
(In Rs Crore) (In US Dollar Million) (In Rs Crore) (In US Dollar Million)(1) (2) (3) (4) (5)(5)(5)(5)(5) (6) (7) (8) (9)(9)(9)(9)(9) (10) (11) (12) (13) (14) (15) (16) (17)
Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03 Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03 Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03 Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03 Table 2: Foreign Exchange Reserves : 1950-51 to 2002-03 (Concluded)(Rupees, Crore)
Foreign Exchange Reserves Transactions with the IMF
Year SDRs Gold Foreign TotalTotalTotalTotalTotal SDRs Gold Foreign TotalTotalTotalTotalTotal Drawings Repur- Out- Drawings Repur- Out- Reserve ReservesCurrency Currency chases standing chases standing Position in termsAssets Assets Repurchase # Repurchase in the of no of
Obligations Obligations Fund months ofImports
(In Rs Crore) (In US Dollar Million) (In Rs Crore ) (In US Dollar Million)(1) (2) (3) (4) (5)(5)(5)(5)(5) (6) (7) (8) (9)(9)(9)(9)(9) (10) (11) (12) (13) (14) (15) (16) (17)
^ import cover is calculated by taking total foreign exchange reserves in US Dollar Million and dividng it by a months import for that year.-’ : denotes nil.@ Excludes Rs. 544.53 crore under Trust Fund.@@ Drawals under Extended Fund Facility(EFF) of Stand-by Arrangement&& Drawals of Rs. 2217.2 crore under Compensatory and Contingency Financing Facility and Rs. 987.5 crore under First Credit Tranche of Stand-by Arrangement$ Includes voluntary repurchases of Rupees (Rs. 199 crore) and sales of Rupees by the IMF under its general Resource accout (Rs. 35.2 crore)$$ Sales of Rupees by the Fund.# Additionally, SDR 59.9 million in May 1979,SDR 59.9 million in July 1980 and SDR 34.5 million in March 1982 were used for repurchases of Rupees.(a) SDR 34.5 million were used for repurchases of dawals under Compensatory Financing
Facility.(b) SDR 33.25 million and Rs. 117.85 crore in foreign currencies were used for repur
chases of drawals under CFF.(c) SDR 66.5 million and SDRs 131.25 million were used for repurchases of drawals
under CFF and EFF respectively.(d) SDR 431.25 million were used for repurchases of drawals under EFF.(e) SDR 704.17 million were used for repurchases of drawals under EFF.(f) SDR 804.18million were used for repurchases of drawals under EFF.(g) SDR 68125 million were used for repurchases of drawals under EFF.
(h) SDR 468.75 million were used for repurchases of drawals under EFF.(i) SDR 337.49 million were used for repurchases of drawals under EFF.(j) SDR 237.49 million were used for repurchases of drawals under EFF.(k) SDR 95.84 million were used for repurchases of drawals under EFF.(l) SDR 337.49 million were used for repurchases of drawals under EFF.(m) SDR 237.49million were used for repurchases of drawals under EFF.(n) SDR 678.38 million were used for repurchases of drawals under EFF.(o) SDR 499.29 million were used for repurchases of drawals under EFF.(p) SDR 212.46 million were used for repurchases of drawals under EFF.
Notes: 1) Figures after 1965-66 are not comparable with those of the earlier years owing to devaluation of th rupee in June 1966.2) Also figures for July 1991 are not comparable with those of earler periods due to the downward adjustment of the Rupee effected on July 1 & 3, 1991.3) Drawals, Repurchase and Outstanding repurchase Obligations are calculated at the ruling rates of exchange.4) Gold is valued at Rs. 53.58 per 10 grams up to May 1966 and at Rs. 84.39 per 10 grams of gold up to September 1990 and closer to international market price w.e.f. October 17,1990.5) Foreign Exchange includes a) Foreign assets of the Reserve Bank of India b) Government balance held abroad up to 1955-56.6) While reserves pertain to end period, repurchases are for the relevant period.7) Import cover is arrived at by dividing total reserves with imports (both in $ million) and multiplying the result by 12.
Sources: Government of India, Economic Survey (various issues) and RBI, Annual Report (various issues)
Balance of P
ayments
14
15B
alance of Paym
ents
Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03(Rupees, Crore)
Financed byFinanced byFinanced byFinanced byFinanced by
Current External Assistance Commercial Borrowing NRI Deposits IMF and SDR Foreign Rupee Debt Other MovementAccount Allocations Investments Service Capital in ReservesDeficit
Year (CAD) Net Percent Drawals Repay- Net Percent Drawals Repay- Net Percent Net Net Percent Net Net inclu- (Decrease+ /of CAD ments of CAD ments of CAD of CAD ding errors Increase-)
Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03 Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03 Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03 Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03 Table 3: Financing of Current Account Deficits : 1950-51 to 2002-03 (Concluded)(Rupees, Crore)
Financed byFinanced byFinanced byFinanced byFinanced by
Current External Assistance Commercial Borrowing NRI Deposits IMF and SDR Foreign Rupee Debt Other MovementAccount Allocations Investments Service Capital in ReservesDeficit
Year (CAD) Net Percent Drawals Repay- Net Percent Drawals Repay- Net Percent Net Net Percent Net Net inclu- (Decrease+ /of CAD ments of CAD ments of CAD of CAD ding errors Increase-)
** Includes silver dispatched to USA and delivered to the American embassy values at Rs. 64.8 crore during April-June 1957 and Rs. 9.6 crore during June-September 1957 in fulfilment oflead-lease obligations.
# Includes India Development Bonds@ Other capital includes banking capital net of non-residents deposits but excludes short-term capital.@@ The net figure as per latest data is -1123, which is after excluding certain prepayments.Notes: * Receipts/disbursements for the year 1973-74 exclude Rs. 1664 crore as official grant receipts/amortisation under the agreement dated Feb.18, 1974 between the government of India
and USA.Signs have been ignored in columns 4, 8, 12, 15
Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02
Year Export as Import as Merchandise Invisibles as Exports of Imports of Current Merchandise Net Invisibles Gross PrivatePercentage Percentage as percentage Percentage Goods and Goods and Account Deficit as as Per Cent of Transfer as
in GDP in GDP of GDP of GDP Services as Services as Deficit as Percentage Merchandise percentagePercentage Percentage Percentage of Current Deficit of:
Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 Table 4: Balance of Payments-Selected Indicators : 1950-51 to 2001-02 (Concluded)
Year Export as Import as Merchandise Invisibles as Exports of Imports of Current Merchandise Net Invisibles Gross PrivatePercentage Percentage as percentage Percentage Goods and Goods and Account Deficit as as Per Cent of Transfer as
in GDP in GDP of GDP of GDP Services as Services as Deficit as Percentage Merchandise percentagePercentage Percentage Percentage of Current Deficit of:
* = Estimated, Rec.:- ReceiptsPay.:- Payments , GDCF:- Gross Domestic Capital Formation.- :- Not Available, Exp.:-Exports, Imp.:-ImportsNotes: GDP figures for 2000-01 are provisional.
GDP figures are taken at current market pricesGDP figures for 2001-02 are quick estimates.In Columns 13 & 14, signs are ignored.
Sources: RBI, Report on Currency and Finance, (various issues), and RBI, Annual Report, (various issues).
19B
alance of Paym
ents
Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90
(4)(4)(4)(4)(4) Capital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR Allocation -4 -8 43 90 -18 -37 -21 -44 92 193 21 45 92 193 179 377 314 659 194 408Receipts 84 176 122 256 84 176 63 132 215 451 86 180 215 451 365 767 419 881 439 922Payments 87 182 79 166 102 214 84 176 123 258 64 135 123 258 186 391 106 222 245 514
(5)(5)(5)(5)(5) Total Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR Allocation 3535353535 7373737373 -120-120-120-120-120 -252-252-252-252-252 -18-18-18-18-18 -37-37-37-37-37 2727272727 5656565656 -12-12-12-12-12 -25-25-25-25-25 2828282828 5959595959 -221-221-221-221-221 -464-464-464-464-464 -252-252-252-252-252 -529-529-529-529-529 -13-13-13-13-13 -28-28-28-28-28 99999 1919191919
Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90
(4)(4)(4)(4)(4) Capital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR Allocation 340 714 292 614 346 726 415 871 461 968 571 1200 794 1121 962 1283 568 757 490 654Receipts 499 1048 611 1283 561 1179 630 1324 986 2071 988 2076 1495 2111 1686 2248 1218 1623 1135 1513Payments 160 336 318 668 216 453 215 452 435 915 417 876 701 990 724 966 650 867 645 860
(5)(5)(5)(5)(5) Total Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR Allocation -53-53-53-53-53 -111-111-111-111-111 -14-14-14-14-14 -30-30-30-30-30 -8-8-8-8-8 -17-17-17-17-17 6565656565 137137137137137 -7-7-7-7-7 -16-16-16-16-16 6161616161 127127127127127 -50-50-50-50-50 -70-70-70-70-70 154154154154154 206206206206206 157157157157157 210210210210210 256256256256256 342342342342342
Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90Appendix 1(A): Balance of Payments : 1950-51 to 1989-90
(4)(4)(4)(4)(4) Capital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR Allocation 424 561 687 917 383 499 -864 -1109 1189 1497 1221 1407 782 871 297 339 503 612 872 1077Receipts 1269 1679 1248 1667 1132 1474 1625 2085 2529 3185 2709 3121 2626 2924 2433 2777 2599 3157 2356 2908Payments 846 1119 561 749 749 975 2489 3195 1340 1688 1488 1714 1844 2054 2136 2438 2095 2546 1484 1832
(5)(5)(5)(5)(5) Total Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR Allocation -22-22-22-22-22 -29-29-29-29-29 188188188188188 252252252252252 7272727272 9393939393 271271271271271 348348348348348 233233233233233 293293293293293 10431043104310431043 12021202120212021202 16761676167616761676 18671867186718671867 14211421142114211421 16221622162216221622 266266266266266 323323323323323 319319319319319 394394394394394
Appendix 1(A): Balance of Payments : 1950-51 to 1989-90 Appendix 1(A): Balance of Payments : 1950-51 to 1989-90 Appendix 1(A): Balance of Payments : 1950-51 to 1989-90 Appendix 1(A): Balance of Payments : 1950-51 to 1989-90 Appendix 1(A): Balance of Payments : 1950-51 to 1989-90 (Concluded)
(4)(4)(4)(4)(4) Capital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR AllocationCapital Account, IMF and SDR Allocation 1826 2309 1310 1461 3476 3596 4369 4225 3469 2918 4658 3807 5227 4091 6284 4847 8757 6047 9318 5597Receipts 4343 5492 3668 4090 6545 6771 7437 7192 6137 5162 8064 6591 11960 9360 17149 13226 21284 14697 27810 16704Payments 2517 3183 2357 2628 3070 3176 3068 2967 2668 2244 3407 2785 6733 5269 10865 8380 12527 8650 18492 11107
(5)(5)(5)(5)(5) Total Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountTotal Current Account, Capital AccountIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR AllocationIMF and SDR Allocation -387-387-387-387-387 -489-489-489-489-489 -1529-1529-1529-1529-1529 -1705-1705-1705-1705-1705 196196196196196 203203203203203 10531053105310531053 10181018101810181018 597597597597597 502502502502502 -1298-1298-1298-1298-1298 -1061-1061-1061-1061-1061 -603-603-603-603-603 -472-472-472-472-472 -9-9-9-9-9 -7-7-7-7-7 -1653-1653-1653-1653-1653 -1141-1141-1141-1141-1141 -512-512-512-512-512 -308-308-308-308-308
Source : Reserve Bank of India Bulletin, 2003, and its various other issues.Monograph on India’s Balance of Payments, July 1993.
Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03
(Rupees, Crore)
1990-91 1991-92 1992-93 1993-94 1994-95
Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net
Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03Appendix 1(B): Balance of Payments : 1990-91 to 2002-03
(Rupees, Crore)
1995-96 1996-97 1997-98 1998-99 1999-00
Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net
Appendix 1(B): Balance of Payments : 1990-91 to 2002-03 Appendix 1(B): Balance of Payments : 1990-91 to 2002-03 Appendix 1(B): Balance of Payments : 1990-91 to 2002-03 Appendix 1(B): Balance of Payments : 1990-91 to 2002-03 Appendix 1(B): Balance of Payments : 1990-91 to 2002-03 (Concluded)
(Rupees, Crore)
2000-01 2001-02 2002-03
Receipts Payments Net Receipts Payments Net Receipts Payments Net
i) By India 1 79 -78 ----- 412 -412 ----- 157 -157ii) To India 13527 11448 2079 16073 10243 5830 13392 24980 -11588
b) Commercial Borrowings 41845 24268 17577 12896 20372 -7476 13219 21502 -8283i) By India 33 9 24 19 ----- 19 45 ----- 45ii) To India 41812 24259 17553 12877 20372 -7495 13174 21502 -8328
c) Short term To India 49351 49030 321 26033 30269 -4236 39617 34902 47153.3.3.3.3. Banking CapitalBanking CapitalBanking CapitalBanking CapitalBanking Capital 5828858288582885828858288 5477154771547715477154771 35173517351735173517 8348983489834898348983489 5681856818568185681856818 2667126671266712667126671 8450084500845008450084500 4470044700447004470044700 3980039800398003980039800
Source : Reserve Bank of India Bulletin, 2003, and its various other issues.Monograph on India’s Balance of Payments, July 1993.
Balance of P
ayments
26
Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03(US Dollar Million)
1990-91 PR 1991-92 1992-93 1993-94 1994-95
Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net
Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03Appendix 1(C): Balance of Payments : 1990-91 to 2002-03(US Dollar Million)
1995-96 1996-97 1997-98 PR 1998-99 1999-2000PR
Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net Receipts Payments Net
Appendix 1(C): Balance of Payments : 1990-91 to 2002-03 Appendix 1(C): Balance of Payments : 1990-91 to 2002-03 Appendix 1(C): Balance of Payments : 1990-91 to 2002-03 Appendix 1(C): Balance of Payments : 1990-91 to 2002-03 Appendix 1(C): Balance of Payments : 1990-91 to 2002-03 (Concluded)(US Dollar Million)
2000-01 PR 2001-02 PR 2002-03Receipts Payments Net Receipts Payments Net Receipts Payments Net
i) By India - 17 -17 - 87 -87 - 32 -32ii) To India 2942 2515 427 3352 2148 1204 2773 5201 -2428
b) Commercial Borrowings 9052 5315 3737 2696 4272 -1576 2737 4435 -1698i) By India 7 2 5 3 - 3 9 - 9ii) To India 9045 5313 3732 2693 4272 -1579 2728 4435 -1707
c) Short term To India 10803 10698 105 5464 6355 -891 8189 7210 9793.3.3.3.3. Banking CapitalBanking CapitalBanking CapitalBanking CapitalBanking Capital 1277212772127721277212772 1196111961119611196111961 811811811811811 1752617526175261752617526 1193411934119341193411934 55925592559255925592 1746217462174621746217462 92199219921992199219 82438243824382438243
* Includes repayment of US dollar 3035 million of government loans effected in Jan-Mar 2003@ Data for 2002-03 are estimated as average of the previous two years.Notes: Data on Foreign Direct Investment (FDI) have been revised since 2000-01 with expanded coverage to approach international best practices. These data, therefore, are not comparable
with FDI data for previous years.Sources: Reserve Bank of India Bulletin, July 2003 and various previous issues
Balance of P
ayments
28
29B
alance of Paym
ents
Appendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current Account
Appendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current Account
Appendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current Account
Appendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current Account
Appendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current AccountAppendix 2: Break-up of Invisibles on Current Account
Appendix 2: Break-up of Invisibles on Current Account Appendix 2: Break-up of Invisibles on Current Account Appendix 2: Break-up of Invisibles on Current Account Appendix 2: Break-up of Invisibles on Current Account Appendix 2: Break-up of Invisibles on Current Account (Concluded)
C.C.C.C.C. Travel Net (A-B)Travel Net (A-B)Travel Net (A-B)Travel Net (A-B)Travel Net (A-B) 55415541554155415541 14771477147714771477 52785278527852785278 12501250125012501250 38983898389838983898 897897897897897 13691369136913691369 294294294294294 30113011301130113011 628628628628628 30113011301130113011 628628628628628
PR : Partially revised.Note: The data from 1956-57 to 1989-90 has no further break-up and hence is the same as given in Appendix 2.
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India’s Balance of Payments, July 1993
Balance of P
ayments
36
Appendix 2 (Bi): Transportation Account: 1956-57 to 1989-90Appendix 2 (Bi): Transportation Account: 1956-57 to 1989-90Appendix 2 (Bi): Transportation Account: 1956-57 to 1989-90Appendix 2 (Bi): Transportation Account: 1956-57 to 1989-90Appendix 2 (Bi): Transportation Account: 1956-57 to 1989-90
BBBBB Total Total Total Total Total 101.5101.5101.5101.5101.5 132.6132.6132.6132.6132.6 195.7195.7195.7195.7195.7 247.7247.7247.7247.7247.7 215.6215.6215.6215.6215.6 235.2235.2235.2235.2235.2 252.7252.7252.7252.7252.7 355.1355.1355.1355.1355.1 482.5482.5482.5482.5482.5 698.5698.5698.5698.5698.5 715.2715.2715.2715.2715.2 917.7917.7917.7917.7917.7 816.1816.1816.1816.1816.1 747.9747.9747.9747.9747.9 1127.91127.91127.91127.91127.9 1486.51486.51486.51486.51486.5 1856.71856.71856.71856.71856.7
c.c.c.c.c. Freight on exportsFreight on exportsFreight on exportsFreight on exportsFreight on exports 1272.21272.21272.21272.21272.2 709709709709709 1715.31715.31715.31715.31715.3 697697697697697 2088.12088.12088.12088.12088.1 721721721721721 2690.22690.22690.22690.22690.2 858858858858858 32623262326232623262 10391039103910391039 4136.74136.74136.74136.74136.7 12301230123012301230d.d.d.d.d. OthersOthersOthersOthersOthers 5.75.75.75.75.7 33333 38.238.238.238.238.2 1616161616 0.90.90.90.90.9 00000 13.113.113.113.113.1 44444 106.2106.2106.2106.2106.2 3333333333 222.6222.6222.6222.6222.6 6767676767
(includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand other port facilities)other port facilities)other port facilities)other port facilities)other port facilities)
B.B.B.B.B. PaymentsPaymentsPaymentsPaymentsPaymentsa.a.a.a.a. Sea TransportSea TransportSea TransportSea TransportSea Transport
Surplus remitted by Foreign 371.4 207 767.6 311 1129.9 369 1441.3 460 1714.1 546 2332.1 695 companies operating in IndiaOperating expenses of Indian 596.5 332 752.3 304 1115.7 364 849.3 271 962.4 307 925.9 276 companies abroadCharter hire charges
b.b.b.b.b. Air TransportAir TransportAir TransportAir TransportAir TransportSurplus remitted by Foreign 490.6 273 1073.2 434 1256.6 410 1657 528 1346 429 1668.7 497companies operating in IndiaOperating expenses of Indian 121.5 68 24.2 10 195.1 64 270.5 86 333.8 106 503.2 150 companies abroadCharter hire charges .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
c.c.c.c.c. Freight on importsFreight on importsFreight on importsFreight on importsFreight on imports 262.8262.8262.8262.8262.8 146146146146146 445.7445.7445.7445.7445.7 180180180180180 702.8*702.8*702.8*702.8*702.8* 230*230*230*230*230* 790.4790.4790.4790.4790.4 252252252252252 634.6634.6634.6634.6634.6 202202202202202 819.4819.4819.4819.4819.4 244244244244244d.d.d.d.d. Remittance of passageRemittance of passageRemittance of passageRemittance of passageRemittance of passage 11111 11111 0.20.20.20.20.2 00000 0.30.30.30.30.3 00000 0.20.20.20.20.2 00000 3.43.43.43.43.4 11111 1.21.21.21.21.2 00000
(includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand other port facilities) other port facilities) other port facilities) other port facilities) other port facilities)
TOTAL-BTOTAL-BTOTAL-BTOTAL-BTOTAL-B 19611961196119611961 10931093109310931093 3189.83189.83189.83189.83189.8 12891289128912891289 45474547454745474547 14851485148514851485 5536.55536.55536.55536.55536.5 17651765176517651765 5851.85851.85851.85851.85851.8 18631863186318631863 7279.57279.57279.57279.57279.5 21692169216921692169Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B) -196.4-196.4-196.4-196.4-196.4 -110-110-110-110-110 -881.6-881.6-881.6-881.6-881.6 -350-350-350-350-350 -1696.6-1696.6-1696.6-1696.6-1696.6 -503-503-503-503-503 -1041.6-1041.6-1041.6-1041.6-1041.6 -332-332-332-332-332 -523.7-523.7-523.7-523.7-523.7 -167-167-167-167-167 -515-515-515-515-515 -158-158-158-158-158
b.b.b.b.b. Air TransportAir TransportAir TransportAir TransportAir TransportSurplus remitted by Indian companies operating abroad 940.8 265 937 252 700 167 781 180 804 176 835 175Operating expenses of foreign 287.9 81 301 81 251 60 87 20 89 20 41 9 companies in IndiaCharter hire charges .......... .......... 72 19 374 89 103 24 19 4 76 16
c.c.c.c.c. Freight on exportsFreight on exportsFreight on exportsFreight on exportsFreight on exports 4626.34626.34626.34626.34626.3 13031303130313031303 35703570357035703570 966966966966966 43184318431843184318 10261026102610261026 46174617461746174617 10651065106510651065 61776177617761776177 13501350135013501350 64986498649864986498 13611361136113611361d.d.d.d.d. OthersOthersOthersOthersOthers 222.4222.4222.4222.4222.4 6060606060 429429429429429 114114114114114 13111311131113111311 308308308308308 673673673673673 155155155155155 658658658658658 143143143143143 723723723723723 152152152152152
(includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand other port facilities)other port facilities)other port facilities)other port facilities)other port facilities)
B.B.B.B.B. PaymentsPaymentsPaymentsPaymentsPaymentsa.a.a.a.a. Sea TransportSea TransportSea TransportSea TransportSea Transport
Surplus remitted by Foreign 2800.5 789 2396 649 1834 388 1681 387 1841 404 1464 308695 companies operating in IndiaOperating expenses of Indian 1281.1 361 1070 290 1353 319 1757 406 2058 450 1506 315 companies abroadCharter hire charges 663 179 656 155 501 116 720 161 826 175
b.b.b.b.b. Air TransportAir TransportAir TransportAir TransportAir TransportSurplus remitted by Foreign 1937.7 546 2249 610 3226 769 3561 821 5936 1299 4074 854 companies operating in IndiaOperating expenses of Indian 638.8 180 779 208 966 232 580 134 435 95 346 73 companies abroadCharter hire charges .......... .......... 529529529529529 144 345 177 324 75 307 67 234 49
c.c.c.c.c. Freight on importsFreight on importsFreight on importsFreight on importsFreight on imports 600.8600.8600.8600.8600.8 169169169169169 10041004100410041004 268268268268268 15841584158415841584 380380380380380 13171317131713171317 304304304304304 28072807280728072807 615615615615615 23692369236923692369 497497497497497d.d.d.d.d. Remittance of passageRemittance of passageRemittance of passageRemittance of passageRemittance of passage 1414141414 44444 430430430430430 114114114114114 332332332332332 3131313131 104104104104104 2424242424 3434343434 77777 9494949494 2020202020
(includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, (includes port charges, bunker, stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand stevedoring, demurrageand other port facilities) other port facilities) other port facilities) other port facilities) other port facilities)
TOTAL-BTOTAL-BTOTAL-BTOTAL-BTOTAL-B 8497.18497.18497.18497.18497.1 23942394239423942394 93539353935393539353 25222522252225222522 1126511265112651126511265 26802680268026802680 1045010450104501045010450 24102410241024102410 1446114461144611446114461 31703170317031703170 1134611346113461134611346 23822382238223822382Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B)Transportation Net (A-B) -1554.7-1554.7-1554.7-1554.7-1554.7 -441-441-441-441-441 -2548-2548-2548-2548-2548 -686-686-686-686-686 -3156-3156-3156-3156-3156 -755-755-755-755-755 -3050-3050-3050-3050-3050 -703-703-703-703-703 -5711-5711-5711-5711-5711 -1257-1257-1257-1257-1257 -1936-1936-1936-1936-1936 -413-413-413-413-413
* includes frieght payment on exports also.Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999
Monograph on India’s Balance of Payments, July 1993
Balance of Payments 40
Appendix 2(Ci): Insurance Account : 1956-57 to 1996-67Appendix 2(Ci): Insurance Account : 1956-57 to 1996-67Appendix 2(Ci): Insurance Account : 1956-57 to 1996-67Appendix 2(Ci): Insurance Account : 1956-57 to 1996-67Appendix 2(Ci): Insurance Account : 1956-57 to 1996-67(Rupees, Crore)(Rupees, Crore)(Rupees, Crore)(Rupees, Crore)(Rupees, Crore)
Year Life Marine Others TotalTotalTotalTotalTotal TotalTotalTotalTotalTotal NetNetNetNetNet
a.a.a.a.a. Insurance on exportInsurance on exportInsurance on exportInsurance on exportInsurance on export 683 184 744 176 832 192 1056 231 1110 232b.b.b.b.b. PremiumPremiumPremiumPremiumPremium
c.c.c.c.c. Commission on BusinessCommission on BusinessCommission on BusinessCommission on BusinessCommission on Business received from foreign companies received from foreign companies received from foreign companies received from foreign companies received from foreign companies 5 1 15 4 2 0 7 2 14 3
d.d.d.d.d. OthersOthersOthersOthersOthers 132 38 72 17 93 21 68 15 68 14 (includes settlement of claims(includes settlement of claims(includes settlement of claims(includes settlement of claims(includes settlement of claims on account of insurance andon account of insurance andon account of insurance andon account of insurance andon account of insurance and re-insurance)re-insurance)re-insurance)re-insurance)re-insurance)
b.b.b.b.b. Commission on BusinessCommission on BusinessCommission on BusinessCommission on BusinessCommission on Business 12 3 6 1 24 6 1 0 11 2
c.c.c.c.c. OthersOthersOthersOthersOthers 134 36 179 31 125 29 173 38 291 62 (includes settlement of claims(includes settlement of claims(includes settlement of claims(includes settlement of claims(includes settlement of claims on account of insurance and on account of insurance and on account of insurance and on account of insurance and on account of insurance and reinsurance reinsurance reinsurance reinsurance reinsurance
TOTAL-BTOTAL-BTOTAL-BTOTAL-BTOTAL-B 680680680680680 183183183183183 472472472472472 112112112112112 525525525525525 122122122122122 562562562562562 122122122122122 12081208120812081208 254254254254254Insurance Net (A-B)Insurance Net (A-B)Insurance Net (A-B)Insurance Net (A-B)Insurance Net (A-B) 210210210210210 5757575757 473473473473473 112112112112112 479479479479479 109109109109109 614614614614614 135135135135135 7171717171 1313131313
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India’s Balance of Payments, July 1993
41B
alance of Paym
ents
Balance of P
ayments
42
Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97
Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97
Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97 Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97 Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97 Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97 Appendix 2(Di): Investment Income Account : 1956-57 to 1996-97 (Concluded)
and obligations held by non-residents 5 Interest onobligations of private 102.4 23.9 73.3 178 145.2 160.6 212.7 542.7 218.2 227.9 465.2 1126.9 708.0
individuals institutions other than banking institutions
6 Interest on long-term loans received 725.5 872.9 1067.8 1504.9 2152.3 3102.8 4555.4 5562.3 6994.2 7113.3 7711.2 7376.1 6927.2 from non-residents including international institutions by official and private sectors**Of which:Interest on long-term loans received from foreign governments and international institutions by: (i) Official sector 601.4 644.9 744.5 1164.9 1763.0 2478.4 .......... .......... .......... .......... .......... .......... .......... (ii) Private sector 124.1 228.0 323.3 340.0 389.3 624.4 .......... .......... .......... .......... .......... .......... ..........
7 Interest on loans and overdrafts 85.7 66.3 170.2 56.9 151.8 76.1 74.3 163.6 175.5 32.6 343.9 187.8 78.9 obtained by banking institutions
8 Interest on balances held in India by 4.5 13.7 1.2 12.0 31.9 3.4 10.1 0.6 1.4 1.8 53.2 111.5 156.4 non-resident banks and official institutions
9 Charges on utitlisation of SDRs 508.7 499.1 464.7 443.7 408.0 433.2 402.1 783.5 885.5 919.5 834.8 634.4 472.2 10 Taxes and tax refunds on profits, 3.2 3.9 7.5 4.4 2.6 7.6 21.1 14.8 17.2 14.8 7.5 35.5 38.8
* Total figures post 1989-90 include certain items elaborated in RBI Bulletin, April 1999. Hence the sum will not tally.@: Upto 1963-64 this item includes dividends of non-controlled companies.:**:Interest Payments in 1961 include for U.K. India credit for oil-pipe line under private account.:*: include an interest subsidy of Rs 44.5 crore received from IMF.Note : Data do not include interest on Foreign Currency (Non-Residents) Accounts scheme since its inception in 1975.Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999
Monograph on India’s Balance of Payments, July 1993
45B
alance of Paym
ents
Appendix 2(Dii): Income Account : 1997-98 to 2001-02Appendix 2(Dii): Income Account : 1997-98 to 2001-02Appendix 2(Dii): Income Account : 1997-98 to 2001-02Appendix 2(Dii): Income Account : 1997-98 to 2001-02Appendix 2(Dii): Income Account : 1997-98 to 2001-02
IIIII Compensation of EmployeesCompensation of EmployeesCompensation of EmployeesCompensation of EmployeesCompensation of Employees1 Wages received by the Indians working 0 0 180 42 646 148 487 107 404 86
on foreign contracts or the foreigners working in India on foreign contracts
IIIIIIIIII Investment IncomeInvestment IncomeInvestment IncomeInvestment IncomeInvestment Income1 Interest received on loans to non-residents 171 46 294 69 688 159 741 163 2041 4282 Dividend/profit received by Indians 95 25 103 25 68 16 113 16 230 48
on foreign investment3 Interest received on debentures, FRNs, 44 12 20 5 50 11 10 3 61 13
CPs, Fi deposits and funds held abroad by Ads out of foreign currency loans/export proceeds
4 Interest received on overdraft of VOSTRO accounts 55 14 40 10 38 10 21 6 52 11 of foreign corresondents/branches by the Ads
5 Payment of taxes by the non-residents/refund 1315 358 1799 426 854 195 456 104 691 145 of taxes by foreign governments to Indians
IIIII Compensation of EmployeesCompensation of EmployeesCompensation of EmployeesCompensation of EmployeesCompensation of Employees1 Payment of wages/salary to Non-residents working 235 62 69 17 57 12 45 10 54 12
in India or Indians working on projects abroadIIIIIIIIII Investment IncomeInvestment IncomeInvestment IncomeInvestment IncomeInvestment Income
1 Payment of interest on non-resident deposits 5384 1436 6919 1637 7549 1742 7803 1710 7613 15962 Payment of interest on loans from non-residents 10442 2799 11657 2762 13167 3037 15048 3297 13401 28083 Payment of dividend/profit to non-resident share holders 2170 578 2752 658 2333 537 4395 963 3756 7874 Payment of interest on debentures, FRNs, CPs, 106 28 936 221 512 119 571 125 468 98
fixed deposits, government securities etc.5 Charges on SDRs 317 85 258 62 132 30 183 40 243 516 Interest paid on overdraft on NOSTRO Account 156 41 13 4 2 0 0 0 0 07 Payment of taxes by the Indians/refund 189 53 497 118 52 13 192 42 243 51
of taxes by government to non-residentsTOTAL - IITOTAL - IITOTAL - IITOTAL - IITOTAL - II 1876418764187641876418764 50205020502050205020 2303223032230322303223032 54625462546254625462 2374723747237472374723747 54785478547854785478 2819228192281922819228192 61776177617761776177 2572425724257242572425724 53915391539153915391
EEEEE Compensation of Employees Net (A-B)Compensation of Employees Net (A-B)Compensation of Employees Net (A-B)Compensation of Employees Net (A-B)Compensation of Employees Net (A-B) -235-235-235-235-235 -62-62-62-62-62 111111111111111 2525252525 589589589589589 136136136136136 442442442442442 9797979797 350350350350350 7474747474FFFFF Investment Income Net (A-B)Investment Income Net (A-B)Investment Income Net (A-B)Investment Income Net (A-B)Investment Income Net (A-B) -12969-12969-12969-12969-12969 -3459-3459-3459-3459-3459 -15079-15079-15079-15079-15079 -3569-3569-3569-3569-3569 -16020-16020-16020-16020-16020 -3695-3695-3695-3695-3695 -17856-17856-17856-17856-17856 -3918-3918-3918-3918-3918 -13013-13013-13013-13013-13013 -2728-2728-2728-2728-2728
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India's Balance of Payments, July 1993
Balance of P
ayments
46
Appendix 2(Ei): Government not included elsewhere Account : From 1956-57 to 1989-90Appendix 2(Ei): Government not included elsewhere Account : From 1956-57 to 1989-90Appendix 2(Ei): Government not included elsewhere Account : From 1956-57 to 1989-90Appendix 2(Ei): Government not included elsewhere Account : From 1956-57 to 1989-90Appendix 2(Ei): Government not included elsewhere Account : From 1956-57 to 1989-90
Notes :*: Represents freight on PL 480 imports initially borne by India but subsequently refunded by the U.S. authorities.:**; This is now shown under official transfer payments from 1964-65Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999
Monograph on India’s Balance of Payments, July 1993
(Contd. above)
47B
alance of Paym
ents
Appendix 2(Eii): Government not included elsewhere Account : 1990-98 to 2001-02Appendix 2(Eii): Government not included elsewhere Account : 1990-98 to 2001-02Appendix 2(Eii): Government not included elsewhere Account : 1990-98 to 2001-02Appendix 2(Eii): Government not included elsewhere Account : 1990-98 to 2001-02Appendix 2(Eii): Government not included elsewhere Account : 1990-98 to 2001-02
a. Maintenance of Indian embassies 581.6 163.0 1227.0 293.0 1023.0 237.0 1232.0 956.0 270.0 201.0 270.0 201.0 and diplomatic missions abroad
b. Remittances by foreign embassies .......... .......... 79.0 21.0 132.0 32.0 144.0 33.0 325.0 337.0 71.0 71.0and missions in India
c Others 53.1 15.0
TOTAL-BTOTAL-BTOTAL-BTOTAL-BTOTAL-B 634.7634.7634.7634.7634.7 178.0178.0178.0178.0178.0 594.0594.0594.0594.0594.0 160.0160.0160.0160.0160.0 1359.01359.01359.01359.01359.0 325.0325.0325.0325.0325.0 1167.01167.01167.01167.01167.0 270.0270.0270.0270.0270.0 1557.01557.01557.01557.01557.0 1293.01293.01293.01293.01293.0 341.0341.0341.0341.0341.0 272.0272.0272.0272.0272.0Gnie Net (A-B)Gnie Net (A-B)Gnie Net (A-B)Gnie Net (A-B)Gnie Net (A-B) -377.8-377.8-377.8-377.8-377.8 -106.0-106.0-106.0-106.0-106.0 444.0444.0444.0444.0444.0 116.0116.0116.0116.0116.0 1161.01161.01161.01161.01161.0 272.0272.0272.0272.0272.0 1356.01356.01356.01356.01356.0 312.0312.0312.0312.0312.0 1455.01455.01455.01455.01455.0 942.0942.0942.0942.0942.0 316.0316.0316.0316.0316.0 197.0197.0197.0197.0197.0
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India's Balance of Payments, July 1993
(Contd. above)
Balance of P
ayments
48
Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90(Rupees, Crore)
Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90 Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90 Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90 Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90 Appendix 2(Fi): Miscellaneous Account : From 1956-57 to 1989-90 (Concluded)(Rupees, Crore)
C. Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B) -187.2-187.2-187.2-187.2-187.2 -104-104-104-104-104 -993.2-993.2-993.2-993.2-993.2 -434-434-434-434-434 -1155-1155-1155-1155-1155 -358-358-358-358-358 366.1366.1366.1366.1366.1 116116116116116 -34.2-34.2-34.2-34.2-34.2 101101101101101 -2269-2269-2269-2269-2269 -660-660-660-660-660
(Contd)
51B
alance of Paym
ents
Appendix 2(Fii): Miscellaneous Account : 1990-91 to 2001-02 Appendix 2(Fii): Miscellaneous Account : 1990-91 to 2001-02 Appendix 2(Fii): Miscellaneous Account : 1990-91 to 2001-02 Appendix 2(Fii): Miscellaneous Account : 1990-91 to 2001-02 Appendix 2(Fii): Miscellaneous Account : 1990-91 to 2001-02 (Concluded)
C. Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B)Miscellaneous Net (A-B) 1220.11220.11220.11220.11220.1 341341341341341 12961296129612961296 355355355355355 53615361536153615361 12861286128612861286 1498714987149871498714987 34493449344934493449 1367413674136741367413674 29902990299029902990 1805318053180531805318053 37743774377437743774
PR : Partially revised.Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999
Monograph on India's Balance of Payments, July 1993
Balance of P
ayments
52
Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90(Rupees, Crore)
Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90 Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90 Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90 Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90 Appendix 2(Gi): Official Transfer Payments Account : 1956-57 to 1989-90 (Concluded)(Rupees, Crore)
Notes : *: Include Rs 8.4 crore earmarked by the U.S. authorities to finance export of goods and services to Nepal under their economic aid programme to that country.:@: Receipts for the year 1973-74 include Rs 1664 crore as official grant receipts under the agreement dated February 18, 1974 between the government of India and USA.
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India's Balance of Payments, July 1993
53B
alance of Paym
ents
Balance of P
ayments
54
Appendix 2(Gii): Official Transfers Account : 1990-91 to 2001-02Appendix 2(Gii): Official Transfers Account : 1990-91 to 2001-02Appendix 2(Gii): Official Transfers Account : 1990-91 to 2001-02Appendix 2(Gii): Official Transfers Account : 1990-91 to 2001-02Appendix 2(Gii): Official Transfers Account : 1990-91 to 2001-02
Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B) 827.5827.5827.5827.5827.5 462462462462462 11401140114011401140 460460460460460 1052.71052.71052.71052.71052.7 363363363363363 1155.31155.31155.31155.31155.3 368368368368368 13091309130913091309 415415415415415 1172.71172.71172.71172.71172.7 345345345345345
Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B)Official Transfers Net (A-B) 1457.11457.11457.11457.11457.1 410410410410410 14181418141814181418 379379379379379 13001300130013001300 307307307307307 16571657165716571657 382382382382382 15461546154615461546 336336336336336 18471847184718471847 384384384384384
Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999Monograph on India's Balance of Payments, July 1993
55B
alance of Paym
ents
Appendix 2(Hi): Private Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Hi): Private Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Hi): Private Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Hi): Private Transfer Payments Account : 1956-57 to 1989-90Appendix 2(Hi): Private Transfer Payments Account : 1956-57 to 1989-90(Rupees, Crore)
Notes :*: Exclusive of PL 480 Title grants which are shown separately in the table on Official Transfer Payments.:@: The figure of Rs 644.2 crore reported in 1988-89 against Others is the compensation for Bhopal Gas tragedy received from Union Carbide Corporation ($ 425 million in US $) and
Union Carbide (India) Limited ($45 million in Indian rupees) deposited with RBI on March 14, 1989.Sources: Reserve Bank of India Bulletin, May 2003, January 2001, April 1999
Monograph on India's Balance of Payments, July 1993
57B
alance of Paym
ents
Appendix 2(Hii): Private Transfers : 1990-91 to 2001-02Appendix 2(Hii): Private Transfers : 1990-91 to 2001-02Appendix 2(Hii): Private Transfers : 1990-91 to 2001-02Appendix 2(Hii): Private Transfers : 1990-91 to 2001-02Appendix 2(Hii): Private Transfers : 1990-91 to 2001-02
A. RECEIPTSRECEIPTSRECEIPTSRECEIPTSRECEIPTSInward remittance from Indian workers 8950.2 2518 19303 5232 32253 7661 32192 7423 37681 8255 38514 8076 abroad for family maintenanceLocal withdrawals / redemptions 12215.1 3427 12773 3418 7808 1859 17849 4120 17305 3791 16422 3444 of non-resident depositsGold and silver brought through 9649.5 2718 9900 2699 705 171 57 13 41 9 62 13 passenger baggage Personal gifts / donations to 2576.1 726 1954 526 2728 650 3182 734 3729 818 3138 659 charitable/religious institutions in India
TOTAL -ATOTAL -ATOTAL -ATOTAL -ATOTAL -A 44208.344208.344208.344208.344208.3 1243512435124351243512435 4393043930439304393043930 1187511875118751187511875 4349443494434944349443494 1034110341103411034110341 5328053280532805328053280 1229012290122901229012290 5875658756587565875658756 1287312873128731287312873 5813658136581365813658136 1219212192121921219212192
B.B.B.B.B. PAYMENTSPAYMENTSPAYMENTSPAYMENTSPAYMENTSRemittance by foreign workers 61.3 17 153 42 219 53 125 29 201 44 172 37 for family maintainancePersonal gifts/donations to 7.9 2 12 3 33 8 23 5 143 31 143 30 charitable/religious institutions abroad
TOTAL -BTOTAL -BTOTAL -BTOTAL -BTOTAL -B 240.2240.2240.2240.2240.2 6868686868 165165165165165 4545454545 252252252252252 6161616161 148148148148148 3434343434 344344344344344 7575757575 315315315315315 6767676767PRIVATE TRANSFERS NET (A-B)PRIVATE TRANSFERS NET (A-B)PRIVATE TRANSFERS NET (A-B)PRIVATE TRANSFERS NET (A-B)PRIVATE TRANSFERS NET (A-B) 43968.143968.143968.143968.143968.1 1236712367123671236712367 4376543765437654376543765 1183011830118301183011830 4324243242432424324243242 1028010280102801028010280 5313253132531325313253132 1225612256122561225612256 5841258412584125841258412 1279812798127981279812798 5782157821578215782157821 1212512125121251212512125
Note: The total figures for the year 1990-91 to 1996-97 will not tally since all the items are not available for all the years. The same can be taken from the RBI Bulletin, April, 1999Source: Reserve Bank of India Bulletin, April, 1999 and May, 2003
Balance of P
ayments
58
Appendix 3(A): Private Foreign Investment : 1955-56 to 1963-64Appendix 3(A): Private Foreign Investment : 1955-56 to 1963-64Appendix 3(A): Private Foreign Investment : 1955-56 to 1963-64Appendix 3(A): Private Foreign Investment : 1955-56 to 1963-64Appendix 3(A): Private Foreign Investment : 1955-56 to 1963-64(Rupees, Crore)
Notes: c: Includes portfolio investmentd: Inflow during 1948 to 1953e: Inflow during 1954 to 19551. Foreign controlled rupee companies are Indian joint stock companies which are (i) subsidiaries of foreign companies (ii) companies in which 40% or more of the equity share capital
is held by a foreign company or its nominees; banking, Insurance and Government companies are excluded. Figures represent equity holding of investors in the country of controland their proportionate share in the free reserves of the foreign controlled rupee companies.
2. Portfolio equity investment in non-foreign controlled rupee companiesand ordinary shares of foreign controlled rupee companies held by investors in countries other than the countryof control and investment in preference shares and debentures, non-resident holdings of preference shares and debentures of rupee companies.
3. Flow of long-term foreign liabilities are exclusive of valuation changes and hence would differ from the net changes in the book values at from outstanding levels.4. Data for the years 1953 to 1962 relate to calendar years while those for 1963-64 onwards relate to fiscal years.5. In view of the shift in the assessment period from calendar year to financial year it has not been possible to indicate the inflows/outflows during 1962-63.6. Stock figures relate to end of the period and flow figures relate to during the year.7. Data are not available for 1980-81 through 1985-86 as no survey was conducted during this period.8. Data between 1987-88 to 1989-90 is not available.
Source: Monograph on India’s Balance of Payments, July 1993
Appendix 3(C): Foreign Investment Inflows : 1990-91 to 2002-03Appendix 3(C): Foreign Investment Inflows : 1990-91 to 2002-03Appendix 3(C): Foreign Investment Inflows : 1990-91 to 2002-03Appendix 3(C): Foreign Investment Inflows : 1990-91 to 2002-03Appendix 3(C): Foreign Investment Inflows : 1990-91 to 2002-03(In US Million)
* : : : : : Relates to acquisition of shares of Indian companies by non-residents under Section 5 of FEMA, 1999 Data on such acquisitions have been included as part of FDI since January 1996.# : : : : : Represents the amount raised by Indian corporates through Global Depositary Receipts (GDRs) and American Depository Receipts (ADRs)** : : : : : Represents fresh inflow of funds by Foreign Institutional Investors (FIIs)$ : : : : : Data for 2002-03 are estimated as average of previous two years.$$ : : : : : Data pertain to inter-company debt transactions of FDI entities.Notes::::: 1. 1. 1. 1. 1. Data on FDI has been revised since 2000-01 with expanded coverage to approach international best practices. These data, therefore, are not comparable with FDI data for previous
years.Source:RBI, Annual Report, 2003
59B
alance of Paym
ents
Balance of P
ayments
60
Appendix 4(A): Inflows under FCNR and NR(E)RA Accounts 1975 to 1999-00Appendix 4(A): Inflows under FCNR and NR(E)RA Accounts 1975 to 1999-00Appendix 4(A): Inflows under FCNR and NR(E)RA Accounts 1975 to 1999-00Appendix 4(A): Inflows under FCNR and NR(E)RA Accounts 1975 to 1999-00Appendix 4(A): Inflows under FCNR and NR(E)RA Accounts 1975 to 1999-00
FCNRA@ NR(E)RA
Year Including accrued interest Excluding estimated accrued interest
Rs. crore U.S.$ million Rs. crore U.S.$ million Rs. crore U.S.$ million(1) (2) (3) (4) (5) (6) (7)
@ ::::: inclusive of accrued interest* ::::: withdrawn effective August, 1994@@ ::::: The inflows into NR(E)RA deposits during the year 2003-04 may partly be due to crediting of maturity proceeds of the NR(NR)R deposits which were discontinued with effect from
April 1, 2002.** ::::: introduced in May, 1993*** ::::: introduced in June, 1992Source::::: Reserve Bank of India Bulletin, July, 2003
61B
alance of Paym
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Appendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSO’s National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statistics As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices)
Appendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSO’s National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statistics As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices)
Appendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSO’s National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statisticss National Accounts Statistics As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices) As Per 1980-81 Series (at Current Prices)
Appendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSOAppendix 5: External Transactions As Per CSO’s National Accounts Statistics As Per 1980-81 Seriess National Accounts Statistics As Per 1980-81 Seriess National Accounts Statistics As Per 1980-81 Seriess National Accounts Statistics As Per 1980-81 Seriess National Accounts Statistics As Per 1980-81 Seriesfor 1990-91 to 1992-93 and As Per 1993-94 Series thereafter (All at Current Prices) for 1990-91 to 1992-93 and As Per 1993-94 Series thereafter (All at Current Prices) for 1990-91 to 1992-93 and As Per 1993-94 Series thereafter (All at Current Prices) for 1990-91 to 1992-93 and As Per 1993-94 Series thereafter (All at Current Prices) for 1990-91 to 1992-93 and As Per 1993-94 Series thereafter (All at Current Prices) (Concluded)
***** Shows the difference between the figures of merchandise exports/imports from the two sources viz. RBI and DGCI & S.Note: Figures within bracket represent percentages to GDP at Current Market Prices.Sources: CSO, National Accounts Statistics, (various issues)