India records current account surplus of 0.9% in FY21
- According to the data released by the Reserve Bank of India, India reported a current account surplus of 0.9% of GDP in the FY 21. In FY 20 there was a current account deficit of 0.9%.
- The reason for Current Account Surplus in FY21 is sharp contraction in the trade deficit to US$ 102.2 billion from US$ 157.5 billion in 2019-20.
- Current Account Surplus/Deficit is difference between Export and Import.
- Current Account Surplus implies that Export from India was more than Import into India.
- Current Account Deficit implies that Import into India was more than Export from India.
- India has seen a Current account surplus for first time in 17 years.
Points to remember:
- Current Account Surplus in FY21?= 0.9% of GDP
- Current Account Deficit in FY20?= 0.9% of GDP
- Current Account Surplus/Deficit is difference between?= Export and Import.
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Source: Reserve Bank of India