As of 2023, what is the current account deficit of India as a percentage of GDP?
Practice Questions
Q1
As of 2023, what is the current account deficit of India as a percentage of GDP? (2023)
1.5%
2.0%
2.5%
3.0%
Questions & Step-by-Step Solutions
As of 2023, what is the current account deficit of India as a percentage of GDP? (2023)
Step 1: Understand what a current account deficit is. It means that a country is spending more on foreign trade than it is earning.
Step 2: Know that GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country.
Step 3: Find the current account deficit figure for India in 2023. This is usually reported by financial institutions or government agencies.
Step 4: Calculate the current account deficit as a percentage of GDP. This is done by dividing the current account deficit by the GDP and then multiplying by 100.
Step 5: As of 2023, the calculation shows that India's current account deficit is approximately 2.0% of GDP.
Current Account Deficit – The current account deficit measures the difference between a country's savings and its investment, indicating how much it relies on foreign capital.
GDP Percentage – Expressing the current account deficit as a percentage of GDP helps to contextualize the deficit relative to the size of the economy.
