India records $63.1 bn balance of payments surplus in H1FY22: Economic Survey

31-01-2022 Mon 22:55 | Business | IANS

New Delhi, Jan 31: Robust capital flows into India resulted in an overall balance of payments (BoP) surplus of $63.1 billion in H1FY22, the Economic Survey 2021-22 said.

According to the Survey tabled in the Parliament on Monday, the robust capital flows were sufficient to finance the modest current account deficit.

It said that inflows augmented foreign exchange reserves crossing the milestone of $600 billion.

India's forex reserve as of December 31, 2021 stood at $633.6 billion.

"As of end November 2021, India was the fourth largest forex reserves holder in the world after China, Japan, and Switzerland.

"A sizable accretion in reserves led to an improvement in external vulnerability indicators such as foreign exchange reserves to total external debt, short-term debt to foreign exchange reserves, etc."

In addition, the Survey document pointed out that India's external sector is resilient to face any unwinding of the global liquidity arising out of the likelihood of faster normalisation of monetary policy by systemically important central banks, including the US Fed, in response to elevated inflationary pressures.

(The content of this article is sourced from a news agency and has not been edited by the ap7am team.)