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External Sector 101
Transfers 75.2 73.5 35.4 37.9
Income -27.3 -36.0 -17.1 -17.2
Source: RBI
Note: P: Provisional
Figure 12: Composition of Net Invisibles
Services Transfers Income
50 33.6 37.2 34.8
31.9 31.8 33.2 35.6 30.1 32.4
40 30.0
30
US$ Billion 20
10
0
-10
-20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2019-20 2020-21 2021-22 (P)
Source: RBI
Note: P: Provisional
CURRENT ACCOUNT BALANCE
3.37 After witnessing a surplus in H1: FY 21, India’s current account balance flipped into
deficit of US$ 3.1 billion (0.2 per cent of GDP) in H1: FY 22, on the back of sharp increase in
merchandise trade deficit (Table 6). However, this current account deficit remained lower than
the deficit of US$ 22.6 billion recorded in H1: FY 20 (pre-pandemic level).
3.38 As far as quarterly movement is concerned, the current account balance switched into a
deficit in Q2: FY 22 from surplus in the previous quarter, due to widening of trade deficit and
an increase in net outgo of investment income (Figure 13).
Table 6: Current Account Balance
Year/ Item (Net) 2019-20 2020-21 2020-21 H1 2021-22 H1 (P)
Current Account Balance (US$ Billion) -24.7 23.9 34.3 -3.1
Current Account Balance as per cent of GDP -0.9 0.9 3.0 -0.2
Source: Reserve Bank of India
Note: P: Provisional
