External Sectors (View Of Economic Survey)

The Union Minister for Finance Nirmala Sitharaman presented the Economic Survey 2021-22 in Parliament. India’s merchandise exports and imports rebounded strongly and surpassed pre-COVID levels during the current financial year.

There was significant pickup in net services with both receipts and payments crossing the pre-pandemic levels, despite weak tourism revenues.

Net capital flows were higher at US$ 65.6 billion in the first half of 2021-22, on account of continued inflow of foreign investment, revival in net external commercial borrowings, higher banking capital and additional special drawing rights (SDR) allocation.

India’s external debt rose to US $ 593.1 billion at end-September 2021, from US $ 556.8 billion a year earlier, reflecting additional SDR allocation by IMF, coupled with higher commercial borrowings.

Foreign Exchange Reserves crossed US$ 600 billion in the first half of 2021-22 and touched US $ 633.6 billion as of December 31, 2021.

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

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