The enhanced Current Account Deficit CAD in the preceding year can be blamed upon 1 Increase in pric...........

Economic Affairs Balance of Payments

The enhanced Current Account Deficit (CAD) in the preceding year can be blamed upon

1. Increase in prices of Crude Oil in international market

2. Uncertainties created by GST leading to front loading by jewelers

3. More export of goods as compared to services

Select the correct answer using the codes below.

1 and 3 only

1 and 2 only

All of the above

2 and 3 only

The recent rise in crude prices in international market has increased India's CAD as India imports more than 80% of its crude oil.

Also, due to uncertainities over the rate of GST there was surplus import of Gold by Jewelers who front loaded it expecting a rise in taxes on gold.

Statement 3 is incorrect as India's goods export is way lower than services export

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