Balance of payments narrows but remains in surplus for fourth year in a row

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Mumbai | Published: December 8, 2014 9:26:23 PM

The country's balance of payments (BoP) remained surplus for the fourth consecutive year at 6.9 billion dollar...

BoP is the record of all economic transactions between residents -- individuals, firms and government bodies -- of a country and the rest of the world. (Reuters)BoP is the record of all economic transactions between residents ? individuals, firms and government bodies ? of a country and the rest of the world. (Reuters)

The country’s balance of payments (BoP) remained surplus for the fourth consecutive year at 6.9 billion dollar for the second quarter, narrower than 11.2 billion dollar surplus in the first quarter, the Reserve Bank of India said here today.

The trade deficit in the September quarter rose to 38.6 billion dollar from 34.6 billion dollar a quarter ago, according to RBI data.

On a balance of payments basis (excluding valuation effects), the foreign exchange reserves rose by 18.1 billion dollar during the September quarter as against a decline of 10.7 billion dollar a year ago.

While, forex reserves in nominal terms, including the valuation effects, rose by 9.6 billion dollar during the reporting quarter as against a decline of 14.8 billion dollar during the same period last year, as per RBI data.

BoP is the record of all economic transactions between residents — individuals, firms and government bodies — of a country and the rest of the world in a particular period and therefore includes all external visible and non-visible transactions of a country during a given period.

On a BoP basis, merchandise export growth decelerated to 4.9 per cent in Q2 from 11.9 per cent in Q2 of last fiscal, while on a BoP basis, merchandise imports increased by 8.1 per cent in Q2 as against a decline of 4.8 per cent in Q2 of FY14, largely due to a sharp rise in gold imports.

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