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- The Reserve Bank of India(RBI) has said that India’s current account deficit(CAD) has increased to $57.2 billion or 2.1% of GDP in FY19 from 1.8% a year ago.
- Current account deficit is one of the key indicators of an economy’s health and measures the difference between the value of the goods and services a country imports and the value of its exports.
- The CAD has increased due to increase in India’s trade deficit to $180.3 billion in 2018-’19 from $160.0 billion in 2017-’18.
- A trade deficit is an economic measure of international trade in which a country’s imports exceed its exports.A trade deficit represents an outflow of domestic currency to foreign markets.
- Meanwhile,the RBI data showed that Net Foreign Direct Investment(FDI) inflows into India were $30.7 billion in 2018-’19 which is marginally higher than $30.3 billion in 2017-18.
- Further,the data from RBI has also showed that the country’s foreign exchange reserves has hit a record high of $426.41 billion for the week ending June 21,2019.
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