CAD of India Raised in Third Quarter of 2021-22

BANKING AND ECONOMY

  • In the third quarter of the financial year 2021-22, India’s Current Account Deficit (CAD 
    was raised by 2.7% to $23 billion from $9.9 billion in the previous quarter.
  • This data was released by the Reserve Bank of India (RBI).
  • The higher CAD was due to higher trade deficit in the third quarter of the financial year 2021-22.
  • CAD measures the gap between the money received into and sent out of the country on the trade of goods and services and the transfer of money from domestically owned factors of production abroad.


 

   Facts to know:

 

  • Formula to calculate Current Account; Current Account = Trade gap + Net current transfers + Net income abroad
  • RBI was established in 1935 through RBI Act, 1934.
  • Headquarters of RBI: Mumbai.
Current Account Deficit was raised by 2.7%
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