CSEET · Economic and Business Environment · Global Environment
India's exports of goods are ₹30 lakh crore, imports of goods ₹45 lakh crore, net exports of services ₹12 lakh crore and net transfers (remittances) received ₹9 lakh crore, with net primary income of minus ₹3 lakh crore. What is the current account balance?
The current account shows a surplus of ₹3 lakh crore. The trade deficit of 15 is offset by net services of 12 and transfers of 9, and then reduced by net primary income of minus 3, giving a net of plus 3.
- ADeficit of ₹3 lakh croreCorrect
- BSurplus of ₹3 lakh crore
- CDeficit of ₹6 lakh crore
- DDeficit of ₹15 lakh crore
Explanation
Trade balance = 30 − 45 = −15. Add services +12, giving −3. Add transfers +9, giving +6. Add primary income −3, giving +3. This gives a surplus of ₹3 lakh crore, so check the options: a surplus of 3 is option B.
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