RBI has released India’s Balance of Payments for Q1 (Apr-Jun) 2007-08.
This is quite an important data release as it gives analysts and academicians data on various capital flows to ponder upon. Some points:
- The exports increased by 17.8% in Q1 of 2007-08 lower than 23.7% noted in Q1 of 2006-07.
- The imports grew by 21.3% in Q1 of 2007-08 lower than 22.9% in Q1 of 2006-07.
- Within imports, oil imports recorded a moderate growth of 8.0 per cent in Q1 of 2007-08 (45.2 per cent in Q1 of 2006-07) where as non-oil imports recorded a strong growth of 47.4 per cent (8.9 per cent in Q1 of 2006-07).
- As exports declined by a higher % the trade deficit was noted at USD 21.6 billion in Q1 of 2007-08 higher than USD 16.9 billion in Q1 of 2006-07.
- However, invisible receipts grew at 27.5% in Q1 2007-08 higher than 23.7% seen in Q1 2006-07; thereby reducing the current deficit.
- The current account deficit was noted at USD 4.7 billion nearly similar to USD 4.6 billion noted in Q1 2006-07.
The capital account remained buoyant on account of substantial portfolio flows; it was noted at USD 15.9 for Q1 2007-08 billion much higher than USD 10.9 billion noted in Q1 2006-07.
- The overall balance of payments was at USD 11.2 billion.