Economic and financial section > Balances of payments > 1931-1932

INDIA
115
SUMMARY TABLE (continued).
Rupees (000,000’s)
Goods, services and gold
Mer¬
chandise
Interest
and
dividends
Other
services
Gold
Total
Capital items
Long¬
term
Short¬
term (1)
Total
All
items
1931-32
Credit .
Debit .
Balance
1,740.4
1,517.8
+ 222.6
12.5
360.1
347.6
115.6
295.0
•179.4
607.7
28.0
-f 579.7
2,476.2
2,200.9
+ 275.3
358.1
240.5
+ 117.6
392.9
■392.9
358.1
633.4
275.3
2,834.3
2,834.3
1932-33
Credit .
Debit .
Balance
1,460.1
1,514.8
— 54.7
8.9
353.0
— 344.1
110.8
272.4
-161.6
668.4
13.2
+ 655.2
2,248.2
2,153.4
+ 94.8
127.9
192.9
65.0
51.7
81.5
29.8
179.6
274.4
- 94.8
2,427.8
2,427.8
The fact that a perfect balance is struck in the above table should not be taken
as a proof that the figures are rigidly exact, for the amounts entered against the
last item in the capital account are not based on direct evidence but are interpolated
as balancing accounts and include, therefore, allowances for possible errors and
omissions in the other items of the account.
The transactions in England have been converted into rupees at the rates of
Is. 57/8d. in 1929-30, Is. 5 25/32d. in 1930-31, Is. 52V32d. in 1931-32 and Is. 6yi6d.
in 1932-33 — the averages for the years in question.
Goods, services and gold.
Merchandise. As the Indian trade returns give only the sea-borne trade, the
estimated volume of the trade across the land frontiers has been added under item
2a. An allowance has also been made for under-valuation of imported merchandise.
Interest and dividends. The credit figures shown against item 3 represent interest
on investment of the gold standard reserve balance in long-term securities in London.
Item 4 represents the interest on investments of Government treasury and reserve
balances in British treasury bills.
The debit figures for interest and dividends are based on an estimate of foreign
investments in India made a few years ago. During 1931-32, a fresh loan of £10 million
was floated in May, of which one half-year’s interest was due during 1931-32. A loan
amounting to £15 million was discharged in January and the temporary loan of
£4 million outstanding on March 31st, 1931, was also repaid in the first quarter of the
year. These transactions raised the interest charges on Government account to an
amount exceeding those in 1930-31 by 1.1 million rupees. In 1932-33, the decrease
in the debit balance of the Government reduced interest charges on Government
account by 5.6 million rupees ; dividends, etc., on private accounts are assumed to
have fallen also.
Other services. The figures entered on account of port receipts (item 6) are
stated to be very rough estimates. The manner in which they are obtained was
explained in the 1927-1929 issue of this volume.
A small debit sum should be entered against item 5 each year on account of coasting
trade in the hands of non-Indian shipping companies, but, as it proved impossible to
frame an accurate estimate, an allowance has been made on this account in the sums
entered against item 9.
(1) Interpolated as balancing accounts.