Question

Consider the following information with respect to the current account gap been reported by the central bank - I.India’s current account deficit (CA

Q: Answer-Consider the following information with respect to the current account gap been reported by the cent...

Indias current account deficit CAD narrowed sequentially to 8.3 billion, or 1 per cent of gross domestic product GDP, in the quarter ended September Q2FY24 due to lower merchandise trade deficit and growth in services exports.The net outgo from the primary income account, mainly reflecting payments of investment income, increased to 12.2 billion in the September 2023 quarter, from 11.8 billion a year ago.Private transfer receipts, mainly representing remittances from Indians employed overseas, amounted to 28.1 billion, an increase of 2.6 per cent year-on-year Y-o-Y.Regarding the balance of payments BoP position in Q2FY24, there was an accretion of 2.5 billion to reserves, as opposed to a depletion of 30.4 billion in the year-ago period.

D narrowed sequentially to $8.3 billion, or 1 per cent of gross domestic product (GD
P , in the quarter ended September (Q2FY24) due to lower merchandise trade deficit and growth in services exports. II.The net outgo from the primary income account, mainly reflecting payments of investment income, decreased to $9.4 billion in the September 2023 quarter, from $11.8 billion a year ago. III.Private transfer receipts, mainly representing remittances from Indians employed overseas, amounted to $40.3 billion, an increase of 2.6 per cent year-on-year (Y-o-
P position in Q2FY24, there was an accretion of $2.5 billion to reserves, as opposed to a depletion of $30.4 billion in the year-ago period. Which of the following statements is/are TRUE ?
Y . IV.Regarding the balance of payments (Bo