Current account deficit was 1.2 percent of GDP in the last financial year, RBI governor gave information
GDP Rate: The country's current account deficit (CAD) stood at...
GDP Rate: The country’s current account deficit (CAD) stood at 1.2 per cent of gross domestic product (GDP) in the financial year 2021-22, while it was 0.9 per cent surplus in the financial year 2020-21. . Let us tell you that CAD has increased mainly due to increasing trade deficit. The Reserve Bank of India (RBI) has given this information on Wednesday.
RBI gave information
According to the RBI, the current account deficit stood at $ 13.4 billion, or 1.5 percent of GDP, in the March quarter of the financial year 2021-22, which is less than Rs. In the previous December quarter, it was $ 22.2 billion, or 2.6 percent of GDP.
Learn why the trade deficit widened?
Tell you a current account deficit occurs when the value of imported goods and services and other payments over a particular period of time to the value of exported goods and services and higher than other gains. The central bank said that the trade deficit widened to $ 189.5 billion in the fiscal year 2021-22, from $102.2 billion in the earlier 2020-21. Due to this the current account deficit has increased. According to the Balance of Payment data, India’s imports stood at $618.6 billion in the financial year 2021-22, compared to $398.5 billion a year ago. This has increased the trade deficit.
How much GDP?
The country’s economic growth rate between January and March in the fourth quarter of the financial year 2021-22 has been 4.1 percent. Whereas earlier in the fourth quarter of the financial year 2020-21, the GDP growth rate was 1.6 percent. At the same time, the GDP in 2021-22 has been 8.7 percent while in the 2020-21 financial year the GDP was negative (-)7.3 percent. Earlier in the financial year 2021-22, the Central Statistics Office (CSO) estimated GDP to be 9.2 percent.