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Indias Overall Balance of Payments

Indias Overall Balance of Payments


A.CURRENT ACCOUNT 1.MERCHANDISE . a. Exports (on f. o. b. basis)

Credit

Debit

Net

b.

Imports (on c. i. f. bais)

2.INVISIBLES (a + b + c ) a. Services i. Travel

ii. Transportation
iii. Insurance iv. G.n.i.e. V. Miscellaneous b. Transfers vi. Official vii. Private c. Investment and other factor Income Total Current Account (1 + 2)

B. CAPITAL ACCOUNT 1. FOREIGN INVESTMENT (a + b ) a. In India i. Direct ii. Portfolia b. Abroad 2. LOAN (a + b + c) a. External Assistance i. By India ii. To India b. Commercial Borrowings (MT and LT ) i. By India ii. To India c. Short-term

3. BANKING CAPITAL (a + b )
a. Commercial Banks

i. Assets
ii. Liabilities

b. Others
4. RUPEE DEBT SERVICE 5. OTHER CAPITAL Total Capital Account (1+ 2+ 3+ 4+ 5) C. ERRORS AND OMISSIONS D. OVERALL BALANCE (A + B + C) E. MONETARY MOVEMENTS (i + ii ) i. I.M.F. ii. Foreign Exchange Reserves (Increase-/ Decrease +)

(Rs. crore) a. Merchandize imports 2,40112

b.
c. d. e. f.

Merchandize exports
Total services rendered to non-residents Total services rendered by NRIs to residents Funds received from foreign governments for the maintenance of their embassy consulates, etc. Funds sent for maintenance of Indian consulates.

1,65993
68,186 51,424 2,523 1,167

g. h.
i.

Payment to a foreign technical consultant for professional services rendered by him. Miscellenous (credit)
Revenue contributions by government of India to international institutions.

43,912 13,898
2

j. k.
i.

Gifts sent to non-residents Indians Cash remitted by non- residents Indians for their family maintenance in India.
Income earned by residents on ownership of financial assets (net)

148 53,280
-15,431

m.
n.

Foreign direct investment (net)


Official transfers (credit)

22,501
1,659

You are required to prepare current account.


Merchandize balance Invisible balance Current account balance

answer
Merchandise balance =-74119 Invisible = 56120 Current account balance = -17999

The following data are extracted from the quarterly report, Jan.-Mar. 2000 of Indias overall balance of payment in rupees. You are required to prepare a balance of payment statement (BoP) indicating the increase/decrease in foreign exchange reserves

(Rs. crore)

Merchandize exports
Merchandize imports Travel exports Travel imports

44,912
69,949 3,897 2,325

Transportation (credit)
Transportation (debit) Insurance (net) G.n.i.e. (credit) G.n.i.e. (debit) Miscellanceous services (net) Debit transfers Credit transfers Short-term loans to India Compensation to employees (net)

2,086
2,310 +89 701 299 7,603 37 15,053 561 168

Investment income (net)


Errors and omissions (credit) External assistance to India External assistance by India Long-term commercial borrowings to India

- 4,262
1,533 1845 6 1,659

Foreign direct investment (FDI) in India


Portfolio investments in India Banking capital (debit) Banking capital (credit) Non-resident deposits (net) Rupee debt service (debit)

2,904
5,789 10,671 10,894 2,834 614

Other capital assets


Investment abroad

( credit)

5,363
103

Calculate: a. Net Current Account Balance,

b. Foreign Reserves Increase/decrease

answer
a. b. c. d. Current Account balance = - 4673 Capital account balance = 17621 Overall balance = 13296 Foreign Reserves Increase =13296