Explanation:

In economics, valuation effects of a country are the changes in the value of assets held abroad, minus the changes in the value of domestic assets held by foreign investors.
The traditional balance of payment identity ignores valuation effects, only recognizes that changes in the net foreign assets (NFA) are fully captured by the current account.
From the Survey:
In H1 of 2016-17, India’s foreign exchange reserves increased by US$ 15.5 billion on BoP basis (i.e., excluding valuation effects), while in nominal terms (i.e., including valuation effect) the increase was to the tune of US$ 11.8 billion