Page 389 - DECO503_INTERNATIONAL_TRADE_AND_FINANCE_ENGLISH

Unit 32 : India’s Balance of Payment

Table 4 : Analysis of invisibles Account Notes
Net Balance on Various Items (US $ million)
2000-01 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

A. Services 1,692 10,144 15,426 23,170 29,469 38,853 49,631 35,726 47,664
(17.3) (36.5) (49.4) (55.2) (56.4) (51.3) (55.2) (44.7) (55.3)
1. Travel 693 1,435 1,417 1,215 2,439 2,091 1,469 2,517 4,043
(7.08) (5.16) (4.54) (2.89) (4.67) (2.76) (1.6) (3.1) (4.7)
2. Transportation -512 879 144 -2,120 -94 -1,500 -1,534 -757 397
(-5.2) (3.2) (0.5) (-5.0) (-0.2) (-2.0) (-1.7) (-1.0) (.5)
3. Software
Services 5,750 12,324 16,900 22,262 26,721 37,712 49,812 33,966* 43,224*
(58.7) (44.3) (54.1) (53.0) (51.2) (49.8) (55.4) (42.5) (50.1)
4. Miscellaneous -3,239 -4,491 -3,035 1,707 403 550 -115
(-33.1) (-16.2) (-9.7) (4.1) (0.8) (0.7) (-0.1) (-18.1)
B. Transfers 13,106 22,162 20,785 24,687 30,079 51,945 44,799 52,305 53,385
(133.8) (79.7) (66.6) (58.8) (57.6) (68.6) (49.8) (65.4) (61.9)
C. Income -5,004 -4,505 -4,979 -5,855 -7,331 -5,067 -4,507 -8,040 –14,862
(-51.1) (-16.2) (-15.9) (-13.9) (-14.0) (-6.7) (-5.0) (-10.0) (–17.2)
Total (A+B+C) 9,794 27,801 31,232 42,002 52,217 75,731 89,923 79,991 86,186
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Source : Compiled and computed from RBI Handbook of Statistics on the Indian Economy (2010-11),
Economic Survey 2010-11.
Note : *includes miscellaneous
Self-Assessment:

1. Choose the correct options:
(i) What is the difference between GNP and GDP?
(a) Net income for factors of production from abroad
(b) Domestic transfers of income
(c) International transfers in the capital account
(d) Capital depreciation
(e) Indirect business taxes
(ii) If imports and exports are insignificant, then national income accounting shows that
(a) net financial investment from foreign countries is negative.
(b) the financial account is positive.
(c) net financial investment from foreign countries is positive.
(d) the financial account is negative.
(e) national saving equals aggregate investment expenditure.
(iii) Which of the following is NOT recorded in the balance of payments?
(a) Official international reserves (b) Current account
(c) Future account (d) Capital account
(e) Financial account

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