Overdrafts allow current account holders to withdraw more money than their account balance up to a predetermined limit, essentially borrowing from the bank.
India’s merchandise trade deficit dipped to 12-month low of $17.7 bn in Jan, while services trade surplus rose to record $16.5 bn. Services exports jumped by more than $4 bn in December.
Strong domestic demand amidst high commodity prices will raise total import bill and contribute to unfavourable developments in the current account balance, warns report.
Majority of the country's deficit is due to negative balance in merchandise account. India usually runs a surplus in services & remittances, but incurs deficit in trade of merchandise.
RBI data shows that India's CAD was around $23.90 billion in the first quarter of FY-22/23. Following the rising prices of commodities globally, the trade deficit also has been affected.
Commerce Secretary B.V.R. Subrahmanyam says country's trade deficit surged in July as elevated commodity prices and depreciating rupee inflated its import bill.
The RBI said the current account balance swung into surplus territory on the back of a sharp contraction in the trade deficit to $102.2 billion from $157.5 billion in 2019-20.
In the current fiscal, as Covid impacted trade, current account had been in surplus in the previous two quarters, according to balance of payments data released by RBI Wednesday.
India has avoided using the so-called Tibet card in the past but even this issue isn't off the table now as New Delhi works with the US to address the China factor.
According to a statement by the airport, commercial operations likely to begin next year 'in view of the current construction status'. It was supposed to commence operations by 2024 end.
Recent high-profile visit was of US National Security Adviser this month during which a number of key issues, including military cooperation, was discussed by both sides.
Changed reality for Modi govt in its 3rd innings is by no means rise of a new phenomenon. It's a return to old normal where even majorities had to routinely wrestle with storied million mutinies.
COMMENTS