India needs to gradually withdraw economic incentives
The external sector of a country’s economy includes all international economic transactions between the country’s residents (private and public sectors), and the rest of the world.
The IMF has projected that India’s current account deficit (CAD) will widen to $108 billion (3.7% of GDP) in FY2023. It was $38 billion (1.2% of CDP) in the previous fiscal.
Current Account Deficit (CAD) is the account of a country’s trade. A current account deficit occurs when the value of goods and services imported by a country exceeds the value of the products it exports. It is part of the balance of payments (BOP) of a country. Deficit position means that more money is going out because of imports than what a country is getting from exports.
A balance of payments is a record of transactions in goods, services and property of residents of a country with the rest of the world for a specified period (usually a year).
Source – The Hindu
