Prepared by Tim Callen.
Export volume figures are derived from partner country import price deflators from the IMF’s World Economic Outlook (WEO).
Prior to their liberalization in October 1997, gold imports took place either through the “baggage route” (where nonresident or returning Indians were allowed to bring up to 10 kilograms of gold into the country) or through special import licenses. Imports through the baggage route were recorded in the balance of payments statistics both as a noncustoms import and as a private transfer (so they had no overall impact on the balance of payments as the foreign exchange used to purchase the gold was earned outside India). Since the liberalization, imports have increasing taken place through the normal customs route, resulting in an increase in customs imports, and a decline in noncustoms imports and private transfers.
See A.T. Kearney, FDI Confidence Index, January 2000, Vol.3., Issue 1. The index is based on a survey of the world’s 1,000 largest companies.
RBI data on FII inflows is only available until February. SEBI data, which is available on a daily basis, shows continued strong inflows until mid-May, but then some outflows in recent weeks.
See India’s External Debt: A Status Report, Government of India, June 2000.