Current account deficit for the Indian Economy!
State Bank of India has pencilled in a lower current account deficit for India at 3% for this fiscal as against the minimum consensus of 3.5%, citing rising software exports, remittances and a likely $5-billion jump in forex reserves via swap deals. • Dimensions of the Article: 1. What is the Current Account Deficit? 2. What is Balance of Payments? 3. What has been the recent trend? 4. What are the reasons for the current account deficit? • What is the Current Account Deficit? A current account deficit occurs when the total value of goods and services a country imports exceeds the total value of goods and services it exports. The balance of exports and imports of goods is referred to as the trade balance. Trade Balance is a part of ‘Current Account Balance’. According to an earlier report of 2021, High Oil Imports, High Gold Imports are the major driving force, widening the CAD. • What is Balance of Payments? BoP of a country can be defined as a systematic statement of all economic tra...