Balance Of Payments

Despite pressure on the trade gap, balance of payments seems to be on track for a small deficit in FY25

Chart of the Day | India’s balance of payments has a current solution for a future problem

Barclays estimates the CAD to be about $40 billion for FY24 and any increase due to oil prices would be offset by flows expected into the local debt market.

India's March quarter CAD at $1.3 billion, $67 billion for FY23

As a percentage of GDP, the January-March current account deficit is 0.2 percent compared to 2 percent in October-December 2022 and 1.6 percent in January-March 2022

Risk of balance-of-payments crisis abating for India; RBI to sharpen focus on reducing inflation: Charles Gave, Gavekal Research

Gave also said the best way for India to deal with structural macro problems would be to maintain the policy rate above inflation “to prevent the inefficient people from having access to capital”.

Oil trade in rupee can be ‘game changer’ for India: Charles Gave, Gavekal Research

India has tended to be permanently on the cusp of a balance-of-payments crisis due to its reliance on energy imports priced in US dollars. But the situation is changing now.

Current account deficit shrinks to $18.2 billion in Oct-Dec period

As a percentage of GDP, October-December current account deficit is 2.2 percent compared to 3.7 percent in July-September and 2.7 percent in October-December 2021

Current account deficit widens to a 9-year high at 4.4% of GDP

As a percentage of GDP, India's July-September CAD is 4.4 percent compared to 2.2 percent in April-June and 1.3 percent in July-September 2021

Falling rupee and a balance of payments flux — What can be done?

Even if India records a negative BOP of $100-125 billion in 2022-23, the forex reserves will come down to only $500 billion or so, which is very large for India’s needs from any standpoint. Thus, there is no need to panic 

Chart of the Day: Hurtling towards a wide current account deficit

India's current account deficit widened slightly in FY22 but the real challenge would come in FY23 as adverse global conditions stretch the CAD further.

Imran Khan’s fall from grace is his own fault

With his populist bravado and anti-Western rhetoric, the Pakistani prime minister has stumbled into a trap of his own making.

India's forex reserves rise by $51.4 billion during April-September 2020

The foreign exchange reserves in nominal terms rose by $66.9 billion during April-September 2020 as compared with $20.8 billion recorded during the same period in 2019.

India’s current account balance surplus rises to $19.8 billion on lower trade deficit: RBI

The surplus in the current account was on account of a sharp contraction in the trade deficit to $10.0 billion due to steeper decline in merchandise imports relative to exports on a year-on-year basis, RBI said in its report on India's Balance of Payments

Balance of payments to be 'very, very strong' this year: Piyush Goyal

He said that "good" green shoots are visible in the economy and exports have shown a "good" turnaround.

Quick Take | The rising current account deficit is not just because of high oil prices

While the deficit on account of petroleum, oil and lubricants (POL) went up by 58 percent from a year ago, the deficit on account of non-POL products rose by 50 percent

Five scary points from the Balance of Payments data

The current account deficit as a percentage of gross domestic product improved year on year, but deteriorated on a sequential basis.

Institutional identity of RBI has been damaged: YV Reddy

Speaking exclusively to CNBC-TV18 Former RBI Governor YV Reddy said that the institutional identity of the banking regulator has been damaged. It is a full-service central bank, he said, adding that the emphasis is only on the monetary policy.

Cheap crude a double-edged sword for India's current account

Persistently, low oil prices have affected overseas workers‘ income. About half of India‘s USD 70 billion-odd NRI remittances originate from the Gulf countries, the region worst affected by record-low crude oil prices and subdued global economic activity.

India's services export down 13% in Feb at $12.3 bn

Import of services too fell by 8.9 per cent to USD 7.19 billion during the month, as compared with USD 7.89 billion in February 2015, as per the RBI data on International Trade in Services.

Oct-Dec CAD drops to 1.3%, BoP surplus at $4.1bn

The BoP surplus in the October-December quarter stood at USD 4.1 billion against USD 13.2 billion year-on-year, according to RBI.

Rupee falls to lowest since 2013 crisis, but traders unfazed

Earlier in the session, the rupee weakened to as much as 67.2550 to the dollar, a level last seen in September 2013, when the country suffered its worst market turmoil since the 1991 balance of payments crisis

Q2 current account deficit widens to $8.2bn; 1.6% of GDP

The country's current account deficit (CAD), or the difference in the value of goods and services exported and imported, widened from USD 6.2 billion in the first quarter (1.2 percent of gross domestic product) of the fiscal year to USD 8.2 billion (1.6 percent of GDP) in the second.

FDI in India up 40% to Rs 1.76 lakh cr in 2014-15

According to the the data of Department of Industrial Policy and Promotion (DIPP) the top 10 sectors that receive maximum foreign investment include services, automobiles, telecommunication, computer software and hardware and pharmaceuticals.

See 50-100 bps rate cut in 1 yr; earnings worry: Violet Arc

Sanju Verma, CEO of Violet Arc Global Managers says it is not the defensives that are truly driving the market. Stocks like Ashok Leyland and Maruti, among others, have seen the most run-up in their stock prices, she adds.

Super skills okay, but did external factor also aid Rajan?

Jahangir Aziz, chief economist at JPMorgan credits Rajan's success to the steps taken for inflation targeting. He says this is perhaps India's first big chance of breaking the inflation challenge. However, he cautions that rates at the moment are not high enough to meet FY15 inflation target.

India halts plan to join global bond indexes

A separate plan to explore joining Euroclear, the world's largest securities settlement system, has also been deferred until the next government takes charge after elections in April and May. That plan could have further opened up the market to portfolio capital inflows.