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.
Since 1979, Iran has used the Palestinian issue as a façade for its regional agenda to oppose American diplomacy, the Western world, and the existence of Israel.
In Episode 1544 of CutTheClutter, Editor-in-Chief Shekhar Gupta looks at some top economists pointing to the pitfalls of ‘currency nationalism’ with data from 1991 to 2004.
The decorated Naga officer from Manipur also served as envoy to Myanmar & Nagaland chief secy. Defence Minister Rajnath Singh inaugurated a museum dedicated to the Tawang hero Thursday.
Congress is silently acknowledging it over-read verdict of last general election. You can see it in easy concession to SP. It will likely be more reasonable in Maharashtra & Jharkhand.
COMMENTS