According to economic Survey 2017 18 there has been increase in Current account deficit CAD as...........

Economic Affairs Tax System

According to economic Survey 2017-18, there has been increase in Current account deficit (CAD) as compared to last year, which of the following factors are responsible for this?

1. Higher trade deficit.

2. GST implementation.

3. Increase in crude oil imports

1 and 2 only

2 and 3 only

All are correct

None

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Explanation:

On a cumulative basis, India’s CAD increased from $3.8 billion(0.4% of GDP) of 2016-17(H1) to $22.2 billion(1.8 % of GDP) of 2017-18(H1).
The widening of the CAD was primarily on the account of higher trade deficit brought by a larger increase in merchandise import relative to export. The surge in imports owed to the sharp rise in imports of gold, with its volume more than doubling as uncertainty over GST implementation resulted in front loading of purchase by jewellers. This coupled with the rise in crude oil prices resulting in increase in oil import bill.