Current Account Surplus

What is the news?

India’s current account surplus moderated to $15.5 billion (2.4% of GDP) in the second quarter compared with a $19.2-billion surplus (3.8% of GDP) in the April-June quarter.
The country had recorded a deficit of $7.6 billion for the quarter ended June, 2019, as per balance of payment data released by the RBI.

Balance of Payments (BoP)

The balance of payments (BoP) record the transactions in goods, services and assets between residents of a country with the rest of the world.

1) Current Account

It records exports and imports in goods and services and transfer payments.
Trade in services denoted as invisible trade includes both

Factor income = interest, profits and dividends on our assets abroad minus the income foreigners earn on assets they own in India.
Non-factor income = shipping, banking, insurance, tourism, software services, etc.

Transfer payments are receipts which the residents of a country receive ‘for free, without having to make any present or future payments in return (non-debt). They consist of remittances, gifts and grants.
The balance of exports and imports of goods is referred to as the trade balance (visible). Adding Trade in services and net transfers to the trade balance, we get the Current Account Balance.

2) Capital Account

The capital account records all international purchases and sales of assets such as money, stocks, bonds, etc.

It includes the following:

Foreign investment in India (FDI, FII, ADR, Direct purchase of land or assets)
External commercial borrowing (IMF, WB, ADB etc.),
External assistance & Grants etc.
Indian Diaspora maintains deposits in foreign currency in India known as NRI deposit.

Source: TH

Join Our Telegram

Govt missions in other countries

UDAN Scheme for UPSC

Formation Day

03 Dec, 25
SHARE

On 1st November, eight Indian states—Andhra Pradesh, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, and Tamil Nadu—along with five Union Territories—Andaman and Nicobar Islands, Chandigarh, Delhi, Lakshadweep, and Puducherry—celebrate their Formation Day. This date marks an important milestone in India

Turtle (Kachhua) Wildlife Sanctuary

02 Dec, 25
SHARE

The Turtle Wildlife Sanctuary, also known as the Kachhua Sanctuary, is located in the Varanasi district of Uttar Pradesh. It is recognised as India’s first freshwater turtle wildlife sanctuary, established to conserve endangered turtle species and support the ecological health of the Ganga River. Location and Extent The sanctuary co

Introduction of AI and Computational Thinking (CT) in

02 Dec, 25
SHARE

The Ministry of Education plans to introduce Artificial Intelligence (AI) and Computational Thinking (CT) from Class 3 onwards in the 2026–27 academic year. This initiative is part of the National Curriculum Framework for School Education (NCF-SE) 2023 and aligns with the National Education Policy (NEP) 2020. The aim is to prepare student

Sal Tree

02 Dec, 25
SHARE

Scientists from the Environment Department of Himachal Pradesh University (HPU) in Shimla have recently revealed that the Sal tree (Shorea robusta) is the most effective natural air purifier for combating rising pollution levels. Their findings highlight the tree’s superior capacity to trap dust, absorb gases, and cleanse the air compared

US Resumes Nuclear Weapon Testing

02 Dec, 25
SHARE

The President of the United States has ordered the resumption of nuclear weapon testing after a gap of 33 years, the last test being in 1992. This decision marks a significant shift in global nuclear policy and has far-reaching implications for geopolitics, the environment, and international security. Status of Global Nuclear Weapon Testing