UPSC CSE Mains Syllabus: GS-3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Current Account Surplus – Associated issues

In news:

What is Current Account:

What does it indicate:

Current account surplus:

Current Account surplus and issues:

There is also reason to expect its normalisation as production recovers from its abysmal decline last quarter and import disruptions ease. 

Going forward, it is anticipated that current account pressures may ease due to progressive restoration of domestic production and import supplies, allowing the central bank more freedom to balance monetary and exchange rate policy objectives with an open capital account. However, the possibility of this trilemma persisting cannot be ruled out. The pronounced or reinforced protectionist turn initiated by Atmanirbhar Bharat measures could be a contributor.

Careful steps have to be taken to resolve the issue.

Source:”Financial Express”.


Why is India experiencing Current Account Surplus recently? Discuss the issues associated with it.