18167053 balance of payment

8/14/2019 18167053 Balance of Payment

1/26

BALANCE OF PAYMENT

(DRAFT-I)


2/26

Submitted to:- Prof. P.C

Panda

Submitted by:-

Debasish Dey(107)

Laxmi Deep (108)

Isha Mohanty(109)

Debabrata

Dash(115)

ChinmayaDash(117)

Subheswari

Das(118)

Ravi Gupta(126)


3/26

BALANCE OF PAYMENT

The balance of payments of a country isa systematic record of all economic

transaction between residents of that

country and the rest of the world during

a given period of time.

To spot whether it is becoming more

difficult for debtor countries to repay

foreign creditors, one needs a set of

accounts that shows the accumulation of

debts, the repayment of interest and

principal, and the countrys ability to

earn foreign exchange for futurerepayment.

Balance of Payments is a systematic andsummary record of a countrys economicand financial transactions with the restof the world over a period of time.

(a) Transactions in good and servicesand income between an economy andthe rest of the world,(b)Changes of ownership and otherchanges in that countrys monetary gold,


4/26

SDRs, and claims on and liabilities to therest of the world, and(c) Unrequited transfers and counterpart

entries that are needed to balance, inthe accounting sense, any entries for theforegoing transactions and changeswhich are not mutually offsetting.

Nature of Balance of Payments AccountingThe transactions that fall under Balanceof Payments are recorded in thestandard double-entry book-keepingform,under which each internationaltransaction undertaken by the countryresults in a credit entry and a debitentry of equal size,as the international

transactions are recorded in the double-entry book-keeping form, the balance ofpayments must always balance, i.e., thetotal amount of debits must equal thetotal amount of credits. Sometimes, thebalancing item, error and omissions,must be added to balance the balance ofpayments.

Components of Balance of PaymentsBalance of Payments is generallygrouped under the following heads


5/26

i) Current Accountii) Capital Accountiii) Unilateral Payments Account

iv) Official Settlement Account.

Current Account

The Current Account includes alltransactions which give rise to or use upnational income.

The Current Account consists of twomajor items, namely:i) Merchandise exports and imports, andii) Invisible exports and imports.Merchandise exports, i.e., the sale ofgoods abroad, are credit entries becauseall transactions giving rise to monetary

claims on foreigners represent credits.On the other hand, merchandise imports,i.e., purchase of goods from abroad, aredebit entries because all transactionsgiving rise to foreign money claims onthe home country represent debits.Merchandise imports and exports formthe most important internationaltransaction of most of the countries.Invisible exports, i.e., sales of services,are credit entries and invisible imports,


6/26

i.e. purchases of services, are debitentries.Important invisible exports include the

sale abroad of such services astransport, insurance, etc., foreign touristexpenditure abroad and income paid onloans and investments (by foreigners) inthe home country form the importantinvisible entries on the debit side.

Capital AccountThe Capital Account consists of short-terms and long-term capital transactionsA capital outflow represents a debit anda capital inflow represents a credit. Forinstance, if an American firm investsRs.100 million in India, this transactionwill be represented as a debit in the USbalance of payments and a credit in thebalance of payments of India.The payment of interest on loans anddividend payments are recorded in theCurrent Account, since they are really

payments for the services of capital. Ashas already been mentioned above, theinterest paid on loans given byforeigners of dividend on foreigninvestments in the home country are


7/26

debits for the home country, while, onthe other hand, the interestreceived on loans given abroad and

dividends on investments abroad arecredits.

Un ilateral Transfers AccountUnilateral transfers is another terms forgifts. These unilateral transfers includeprivate remittances, government grants,disaster relief, etc.Unilateral payments received fromabroad are credits and those madeabroad are debits.

Official Settlements AccountsOfficial reserves represent the holdingsby the government or official agencies of

the means of payment that are generallyaccepted for the settlement ofinternational claims.

Balance of Payments ItemsCredits Debits.Current Account CurrentAccount1. Merchandise Exports 1.MerchandiseImports(Sale of Goods) (PurchaseofGoods)


8/26

2. Invisible Exports 2.InvisibleImports(Sale of Services) (Purchase of

Services)(a) Transport Services (a) TransportServicessold purchased fromabroad(b) Insurance services (b) InsuranceServicessold abroad purchased fromabroad(c) Foreign tourist (c) TouristExpenditureexpenditure in country abroad(d) Other services sold (d) Other

services purchasedabroad from abroad(e) Incomes received on (e)Income paidon loans andloans and Investment investmentsabroad.in home country.Capital Account Capital Account3. Foreign long-term 3. Long-terminvestments abroad.investments in the home


9/26

(a) Direct investments in (a) Directinvestments country.abroad the home

(b) Foreign investments (b)Investmentsinsecurities in domestic foreignsecurities.(c) Other investments (c) Otherinvestments abroadof foreigners abroad.4. Foreign short-term 4.Short-

terminvestmentsin home country. abroadUnilateral Transfers UnilateralTransfersAccount Account

5. Private remittances 5. Privateremittances abroadreceived from abroad6. Pension Payments 6. Pensionpayments abroad.received from abroad.7. Government grants 7. Governmentgrants abroadReceived from abroadOfficial Settlements OfficialSettlements


10/26

Accounts Account8. Official sales of 8. Officialpurchases of

foreign currencies foreign currenciesor other reserve or otherservices abroadassets abroadTotal Credits Total Debits

Balance of Payments DisequilibirumThe balance of payments of a country issaid to be in equilibrium when thedemand for foreign exchange is exactlyequivalent to the supply of it. Thebalance of payments is in disequilibriumwhen there is either a surplus or adeficit in the balance of payments. Whenthere is a deficit in the balance ofpayments, the demand for foreignexchange exceeds the demand for it.A number of factors may causedisequilibrium in the balance of

payments. These various causes may bebroadly categorized into:(i) Economic factors ;(ii) Political factors; and(iii) Sociological factors.


11/26

Economic Factors

A number of economic factors may causedisequilibrium in the balance ofpayments. These are:

Development Disequilibrium

Large-scale development expendituresusually increase the

purchasing power, aggregate demand andprices, resulting insubstantially large imports. The developmentdisequilibrium is common in developingcountries, because the above factors, andlarge-scale capital goods imports needed forcarrying out the various developmentprogrammes, give rise to a deficit in thebalance of payments.

Capital DisequilibriumCyclical fluctuations in general businessactivity are one of the prominent reasons forthe balance of payments disequilibrium.As Lawrance W. Towle points out, depression

always bringsabout a drastic shrinkage in world trade,while prosperity stimulates it. A countryenjoying a boom all by itselt ordinarilyexperiences more rapid growth in its importsthan its exports, while the opposite is true of


12/26

other countries. But production in the othercountries will be activated as a result of theincreased exports to the boom country.

Secular DisequilibriumSometimes, the balance of paymentsdiequilibrium persists for a long timebecause of certain secular trends in theeconomy.For instance, in a developed country, thedisposable income isgenerally very high and,

therefore, the aggregate demand, too, isvery high. At the same time, production costsare very high because of the higher wages.This naturally results in higher prices. Thesetwo factors high aggregate demand andhigher domestic prices may result in theimports being much higher than the exports.

This could be one of the reasons for thepersistent balance of payments deficits ofthe USA.

Structural Disequilibrium

Structual changes in the economy may alsocause balance ofpayments disequilibrium. Such structuralchanges include the development ofalternative sources of supply, thedevelopment of better substitutes, the


13/26

exhaustion of productive resources, thechanges in transport routes and costs, etc.

Political FactorsCertain political factors may also produce abalance of payments disequilibrium. Forinstance, a country plagued with politicalinstability may experience large capitaloutflows, inadequacy of domestic investmentand production, etc. These factors may,sometimes, cause disequilibrium in thebalance of payments. Further, factors likewar, changes in world trade routes, etc., mayalso produce balance of paymentsdifficulties.

Social FactorsCertain social factors influence the balance of

payments. Forinstance, changes in tastes, preferences,fashions, etc. may affect imports and exportsand thereby affect the balance of payments.

Foreign exchange reserves i

India(in million us$)End of Foreign

currenc

y

Gold SDRs Reserv

e

tranch

Total


14/26

e in

IMFASSETS IN US MILLION % Rs in

cr.

In U

million$1 3 5 8 10 11 12=(5+3+8

=10)2Jul 114,71

8

4,057 2 1,301 5,51,8

82

1,20,077

9jul 115,40

5,

4,057 2 1,314 5,527,

68

1,20,778

16jul 115,737

4,057 2 1,310 5,59,071

1,21,106

23jul 114,21

5

4,057 2 1,301 5,52,5

80

1,19,575

30jul 112,96

7

4,057 2 1,293 5,49,4

02

1,18,319

6aug 113,91

8

4,123 2 1,293 5,54,0

83

1,19,336

13aug 113,90

0

4,123 1 1,298 5,52,0

66

1,19,322


15/26

STATEMENT 2: INDIA'S OVERALL BALANCE OFPAYMENTS

(Rs crore)

Item

April-June 2007 P April-June 2006 PR

Credit Debit Net Credit Debit Net

1 2 3 4 5 6 7

A.CURRENT ACCOUNT

I. MERCHANDISE 144,155 233,139 -88,984 134,930 211,985 -77,055

II.INVISIBLES (a+b+c) 129,609 59,992 69,617 112,054 55,764 56,290

a) Services 82,721 44,991 37,730 77,328 41,109 36,219

i) Travel 8,610 7,756 854 7,766 6,766 1,000

ii) Transportation 9,105 11,100 -1,995 7,885 9,312 -1,427

iii) Insurance 1,719 759 960 1,087 582 505

iv) G.n.i.e. 396 462 -66 259 368 -109

v) Miscellaneous 62,891 24,914 37,977 60,331 24,081 36,250

of which

Software Services 34,806 2,297 32,509 32,007 1,992 30,015

Business Services 18,469 14,886 3,583 20,757 14,432 6,325

Financial Services 3,641 3,538 103 2,828 1,441 1,387

Communication Services 2,115 825 1,290 2,019 491 1,528

b) Transfers 36,121 1,785 34,336 27,246 1,364 25,882

i) Official 631 684 -53 314 409 -95ii) Private 35,490 1,101 34,389 26,932 955 25,977

c) Income 10,767 13,216 -2,449 7,480 13,291 -5,811

i) Investment Income 10,206 12,210 -2,004 7,184 12,400 -5,216

ii) Compensation of Employees 561 1,006 -445 296 891 -595

Total Current Account (I+II) 273,764 293,131 -19,367 246,984 267,749 -20,765

B. CAPITAL ACCOUNT

1. Foreign Investment (a+b) 169,531 136,879 32,652 152,041 147,898 4,143

a) Foreign Direct Investment (i+ii) 26,530 24,630 1,900 11,886 5,447 6,439

i. In India 24,345 87 24,258 11,586 36 11,550Equity 20,737 87 20,650 8,376 36 8,340

Reinvested Earnings 2,919 0 2,919 3,174 0 3,174

Other Capital 689 0 689 36 0 36

ii. Abroad 2,185 24,543 -22,358 300 5,411 -5,111

Equity 2,185 22,807 -20,622 300 3,533 -3,233

Reinvested Earnings 0 1,117 -1,117 0 837 -837

Other Capital 0 619 -619 0 1,041 -1,041


16/26

b) Portfolio Investment 143,001 112,249 30,752 140,155 142,451 -2,296

In India 142,758 112,224 30,534 140,055 142,446 -2,391

Abroad 243 25 218 100 5 95

2.Loans (a+b+c) 65,480 31,034 34,446 48,831 28,710 20,121

a) External Assistance 3,109 2,046 1,063 2,619 2,396 223

i) By India 21 54 -33 18 41 -23

ii) To India 3,088 1,992 1,096 2,601 2,355 246

b) Commercial Borrowings (MT&LT) 34,282 5,220 29,062 22,995 4,993 18,002

i) By India 1,464 1,196 268 414 1,014 -600

ii) To India 32,818 4,024 28,794 22,581 3,979 18,602

c) Short Term to India 28,089 23,768 4,321 23,217 21,321 1,896

3. Banking Capital (a+b) 30,113 38,856 -8,743 44,729 22,040 22,689

a) Commercial Banks 30,113 38,831 -8,718 44,402 22,040 22,362

i) Assets 9,001 10,313 -1,312 23,904 8,535 15,369

ii) Liabilities 21,112 28,518 -7,406 20,498 13,505 6,993

of which: Non-Resident Deposits 19,755 21,599 -1,844 18,980 13,382 5,598

b) Others 0 25 -25 327 0 327

4. Rupee Debt Service 0 177 -177 0 305 -305

5. Other Capital 13,764 9,014 4,750 8,121 6,734 1,387

Total Capital Account (1to5) 278,888 215,960 62,928 253,722 205,687 48,035

C. Errors & Omissions 2,622 0 2,622 1,736 0 1,736

D. Overall Balance 555,274 509,091 46,183 502,442 473,436 29,006

(Total Capital Account, Current Account

and Errors & Omissions (A+B+C))

E. Monetary Movements (i+ii) 0 46,183 -46,183 0 29,006 -29,006

i) I.M.F. 0 0 0 0 0 0ii) Foreign Exchange Reserves 0 46,183 -46,183 0 29,006 -29,006

( Increase - / Decrease +)

P: Preliminary PR: Partially Revised

RBI has released the latest Balance of Payments for the 4th quarter

(i.e. Jan-Mar) 2006-07 and alongside has released preliminaryfindings for the entire financial year 2006-07.

Here is a quick summary:

Current Account:
http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=16829http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=16829http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=16829http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=16829


17/26

Exports of goods increased by 21 % during 2006-07compared to 23 % in 2005-06. Exports grew mainly onaccount of tea, spices, engineering and petro goods.

Imports growth at 22 per cent in 2006-07 (32 per cent in2005-06). Imports grew mainly on account of non-oil importsand not oil-imports as it has generally been the case.

Non-oil imports increased by 25% in 2006-07 (21.8% in2005-06). The major non-oil import items were capital goods,metalliferrous ores, metal scrap and gold and silver.

Crude oil imports during 2006-07 recorded somemoderation in growth at 30.4 % (47.3 % in 2005-06). The

slowdown in oil imports was largely because of a moderationin crude oil prices. The average price of the Indian basket ofinternational crude (a mix of Dubai and Brent varieties)stood at $ 62.4 per barrel during 2006-07 as compared withUS $ 55.4 per barrel during 2005-06. This implies that theprices increased by 13% in 2006-07 much lower than 42%increase seen in 2005-06. In volume terms, the oil importdemand rose to 13% in 2006-07 from 8 % in 2005-06,

tracking the growth in industrial sector.The service exports increased by 37% in 06-07 compared

to 68% in 05-06. Software exports increased by 29% on 06-07 compared to 35% in 05-06.

Capital account:

FDI has a larger share in foreign investments than FII, atrend last seen in 2002-03. Outward FDI and FII have also

grown sharply at 273% and 85%, showing Indians appetitefor investing abroad is increasing.

External Commercial Borrowings have grown at ashocking rate of 491% this year and are now at about USD


18/26

16 billion. That is why RBI revised the rates corporate canpay for ECB.

The total capital flows have increased by 92% and despite

the increasing current account deficit, we have a huge BoPsurplus at USD 36.6 billion, an increase of 143%.THE CURRENT DEFICIT

The current account for Q1 2008-09 was noted at a deficit of$10.7 bn. This is the highest quarterly current accountdeficit (CAD) since the quarterly figures have been available(Q1 1990). The 1991 crisis was a result of the inability tofinance the CAD. So, is the current CAD a cause of concern?

Current account shows the external trade position of aneconomy. It comprises two sub-accounts export/import ofgoods and export/import of invisibles. Invisibles includeservices, remittances and investment income. The goods

imports have always been more than exports, resulting intrade deficit.

Recently, goods imports have surged mainly due to high oilprices. The widening trade deficit so far has been negated bya surge in revenue from services inflows (software). If theservice inflows are less than trade deficit we get CAD, whichin turn is financed by capital inflows (FDI, FII, etc) from

abroad (vice-versa for current account surplus).

In Q1 2008-09, the trade deficit was $31.6 bn and the netservice inflows was positive $20.9 bn, implying a CAD of10.7 bn. Capital inflows were $12.9 bn leading to an overall
http://mostlyeconomics.wordpress.com/2007/05/22/policy-development/http://mostlyeconomics.wordpress.com/2007/05/22/policy-development/http://mostlyeconomics.wordpress.com/2007/05/22/policy-development/http://mostlyeconomics.wordpress.com/2007/05/22/policy-development/


19/26

surplus of $2.2 bn.

The concern is not having a deficit, but financing it. In India,a widening CAD has so far been financed by buoyant capitalflows. But things are expected to change looking at thecurrent global crisis. First, pressure on oil prices is likely tocontinue as emerging economies expand further.

Second, software exports are likely to decline trackingcollapses of several foreign financial firms. The Indiansoftware industry derives majority of its revenues from

foreign financial sector and latter is clearly contracting.

Third, with a global slowdown the capital inflows are alsoexpected to decline Fourth, the goods exports are alsoexpected to decline, as demand in other economies contracts.

In all, CAD levels are expected to decline but the deficit is

likely to continue. The silver lining is the ample forexreserves held by the RBI. Those would help India finance itsoil bills and manage the global slowdown.

A combined effect of rapid economic growth, importliberalisation and rising oil prices in 2007-08 has been abalance of trade deficit expanding to $80 bn. This year itmay expand further to $100 bn. Although services andinvisibles have been helping in moderating the currentaccount deficit, it is beginning to look worrisome as servicesexport growth is also tapering off.

Current account deficit helps India absorb foreign savings.


20/26

As long as current account deficit is bridged through capitalinflows such as foreign direct investments (FDI), it should befine as it leads to addition of capital stock.

However, we have to be cautious while bridging this deficitwith short-term capital flows or borrowing huge amounts ininternational ,as they can bring instability or push us into adebt trap.

PROPOSED SOLUTION :-

In the medium and long run we need to strengthen andexpand the base of Indian exports so that we have a moresustainable balance of payments situation. India shouldconsolidate her presence in traditional export industries suchas textiles, clothing, leather goods, gems and jewellery,Agricultural and horticultural products.

With our labour cost advantage eroding over time, the

competitiveness will have to be sustained by internalising thefull value chainWhile consolidating Indian advances in genericpharmaceuticals, small cars, two wheelers, and metals, weneed to develop new industries leveraging our large andexpanding market to containing imports and for newavenues for exports.

A domestic mobile handset production base has been builtbut what about a large personal computer manufacturingbase especially in view of our skills base and softwarecapabilities? A Nano type innovation could help indeveloping a major industry.


21/26

We should also seek to develop new scale-intensive, export-oriented industries such as aerospace, ship building andmultiply power and telecom equipment producers. The timehas come for giving a new thrust to industrialisation togenerate exports and substitute imports for a moresustainable BoP while generating output and jobs formillions

Our view is:

Current Account deficit has widened by only 5% in 06-07compared to 70% in 05-06 and is at about 1% of GDP. Asthe Rupee has been appreciating (it is now in the 41 Rs= 1$compared to 43.5-44 range till March 31, 2007) the tradebalance should worsen (as imports get cheaper and exportsexpensive). It is already happening as per the latest pressrelease, imports have been rising and exports slowing.

So it would all depend on how much RBI intervenes in Forexmarkets. If it doesnt given the high capital flows, thecurrency would appreciate. But then India has a currentaccount deficit and the currency should depreciate!! If RBIlets the exchange rate to markets it would be interesting tosee the rupee level ahead.

Another problem is with high investments needed in

infrastructure we would need extra foreign capital, ascurrently investments are more than available savings (asper latest CSO estimates, Savings is 35% of GDP andInvestments 37% of GDP) . That means more investmentsand which means more current account deficit. So, it is a bitof a mixed story and lets see how things move ahead.
http://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.htmlhttp://commerce.nic.in/pressrel.html


22/26

EFFEECTS OF RECENT ECONOMIC CRISIS

ON BALANCE OF PAYMENT

Indias balance of payment fell by close t

o$10 billion during the week ended

10thOctober 20, 2008,a record fall mainly due

to heavy dollar sales by the central bank to

stem the fall in the value of the local

currency.

According to data released by the Reserve

Bank Of India, the total foreign exchange

reserve, including gold and SDR, dipped to $

274 billion during the week ended October 10

from $291.9 at the end of September. This is

the third straight week that the Forex

stockpile has fallen with the slide in the past

two weeks being specially severe.

The past fortnight also marked the period

when foreign portfolio investors sold stocks

in droves, forcing the central bank to sell

dollars to pour up the rupee.

India- the fourth largest holder of foreign

exchange reserves in Asia after China ,Japan

and Taiwan-has seen reserves sliding since

the start of the fiscal. Starting from end

march the Forex stockpile has shrunk by


23/26

close to $35 billion, forcing policymakers to

recently unveil measures to boost inflows like

a higher investment limit for FIIs in corporate

debt and also allowing banks to offer higherrates on deposits for non-resident Indians.

The scenario now is in stark contrast to the

same period a year ago, when reserves rose

by $57 billion. India is not alone on this

count. Other emerging Asian economies, too,

have been scarred.STATEMENT 2 : INDIA'S OVERALL BALANCE OF PAYMENTS

(Rs.crore)

April-June 2008 P April-June 2007 PR

Item Credit Debit Net Credit Debit Net

1 2 3 4 5 6 7

A.CURRENT ACCOUNT

I. MERCHANDISE 182,049 313,573 -131,524 147,421 232,781 -85,360

II.INVISIBLES (a+b+c) 157,169 70,316 86,853 119,993 60,615 59,378

a) Services 91,515 47,938 43,577 77,620 41,627 35,993i) Travel 10,431 8,994 1,437 8,610 7,756 854

ii) Transportation 10,143 13,813 -3,670 7,855 10,276 -2,421

iii) Insurance 1,408 933 475 1,522 759 763

iv) G.n.i.e. 542 462 80 396 462 -66

v) Miscellaneous 68,991 23,736 45,255 59,237 22,374 36,863

of which

Software Services 44,389 3,570 40,819 36,435 3,282 33,153

Business Services 16,962 13,430 3,532 16,411 13,170 3,241

Financial Services 3,103 2,612 491 2,598 2,528 70

Communication Services 2,474 941 1,533 2,115 825 1,290b) Transfers 50,770 2,774 47,966 32,786 1,785 31,001

i) Official 629 504 125 631 684 -53

ii) Private 50,141 2,270 47,841 32,155 1,101 31,054

c) Income 14,884 19,604 -4,720 9,587 17,203 -7,616

i) Investment Income 14,238 18,229 -3,991 9,298 16,387 -7,089

ii) Compensation of Employees 646 1,375 -729 289 816 -527

Total Current Account (I+II) 339,218 383,889 -44,671 267,414 293,396 -25,982


24/26

B. CAPITAL ACCOUNT

1. Foreign Investment (a+b) 221,448 196,833 24,615 174,986 133,275 41,711

a) Foreign Direct Investment (i+ii) 51,642 9,498 42,144 31,985 21,026 10,959

i. In India 50,646 92 50,554 28,864 87 28,777

Equity 42,656 92 42,564 21,310 87 21,223

Reinvested Earnings 7,169 - 7,169 7,096 - 7,096

Other Capital 821 - 821 458 - 458

ii. Abroad 996 9,406 -8,410 3,121 20,939 -17,818

Equity 996 6,398 -5,402 3,121 18,065 -14,944

Reinvested Earnings - 1,129 -1,129 - 1,117 -1,117

Other Capital - 1,879 -1,879 - 1,757 -1,757

b) Portfolio Investment 169,806 187,335 -17,529 143,001 112,249 30,752

In India 169,727 187,131 -17,404 142,758 112,224 30,534

Abroad 79 204 -125 243 25 218

2.Loans (a+b+c) 56,832 39,823 17,009 68,339 31,084 37,255

a) External Assistance 3,787 2,324 1,463 3,019 2,025 994

i) By India 25 33 -8 25 29 -4

ii) To India 3,762 2,291 1,471 2,994 1,996 998

b) Commercial Borrowings (MT&LT) 11,589 5,095 6,494 34,113 5,291 28,822

i) By India 1,687 804 883 1,464 1,196 268

ii) To India 9,902 4,291 5,611 32,649 4,095 28,554

c) Short Term to India 41,456 32,404 9,052 31,207 23,768 7,439i) Suppliers' Short Term to India Credit>180days & Buyers Credit 38,557 32,404 6,153 28,382 23,768 4,614

ii) Suppliers' Credit up to 180 days 2,899 - 2,899 2,825 - 2,825

3. Banking Capital (a+b) 79,250 67,857 11,393 35,260 39,049 -3,789

a) Commercial Banks 79,250 67,395 11,855 35,260 39,024 -3,764

i) Assets 35,545 31,692 3,853 10,486 11,797 -1,311

ii) Liabilities 43,705 35,703 8,002 24,774 27,227 -2,453

of which: Non-Resident Deposits 37,744 34,358 3,386 21,619 23,462 -1,843

b) Others - 462 -462 - 25 -25

4. Rupee Debt Service - 125 -125 - 177 -177

5. Other Capital 10,768 8,610 2,158 4,070 7,546 -3,476

Total Capital Account (1to5) 368,298 313,248 55,050 282,655 211,131 71,524

C. Errors & Omissions - 1,069 -1,069 641 - 641

D. Overall Balance 707,516 698,206 9,310 550,710 504,527 46,183

(Total Capital Account, Current Account

and Errors & Omissions (A+B+C))

E. Monetary Movements (i+ii) - 9,310 -9,310 - 46,183 -46,183

i) I.M.F. - - - - - -

ii) Foreign Exchange Reserves - 9,310 -9,310 - 46,183 -46,183

( Increase - / Decrease +)

P: Preliminary. PR: Partially Revised.


25/26

oleObject1

Source:-

A) Primary datas from Prof. P.C Panda

B) Web & Media

www.rbi.org

www.investopedia.com

www.wikipedia.org

www.boj.or.jp/en/

www.indiastat.com/india/ShowData.asp?secid=53&ptid=8&level=2 -

83k

www.rocw.raifoundation.org/management/mba/internationaltrade/lect

ure-notes/lecture-14.pdf -www.

informationbible.com/BalanceOfPayment.html

The Economic Times
http://www.rbi.org/http://www.investopedia.com/http://www.wikipedia.org/http://www.boj.or.jp/en/http://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.htmlhttp://www.rbi.org/http://www.investopedia.com/http://www.wikipedia.org/http://www.boj.or.jp/en/http://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.htmlhttp://www.informationbible.com/BalanceOfPayment.html


26/26

The Times Of India

18167053 balance of payment

Documents