Consider the following statements regarding Economic Survey 2016 17 1 For year 2016 1...........

Economic Affairs Balance of Payments

Download Solution PDF

Consider the following statements regarding Economic Survey 2016-17:

1. For year 2016-17, Current account deficit (CAD) has increased as compare to last fiscal year.

2. India’s aggregate external debt registered a decline in this fiscal year.

Which of the above statement(s) is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Balance of Payments

Prepare through Micro-courses

Try Now

Explanation:

The current account deficit (CAD) narrowed down progressively to 0.7 per cent of GDP in 2016-17 from 1.1 per cent of GDP in 2015-16 led by sharp contraction in trade deficit which more than outweighed a decline in net invisibles earnings.
Most of the external debt indicators of India improved at end-March 2017 compared end-March, 2016. India’s aggregate external debt stock at end-March 2017 stood at US$ 471.9 billion registering a decline of US$ 13.1 billion (2.7 per cent) over end-March 2016.