![India’s FY24 CAD declines to 0.7% of GDP from 2% in FY23; records surplus of 0.6% in Q4: RBI India’s FY24 CAD declines to 0.7% of GDP from 2% in FY23; records surplus of 0.6% in Q4: RBI](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgB_kALFEm4RpRS-BIg6UhWCpuxAKGB8J0vc11Nw0v2pjmcKRqbGLraXdPPzM1z-Wy2TSfVcUEqNT6K7ZFiYPAqsJk4VcEjav-82jSe4dRFXZWRBnOCXdaNHmJHbCPkEeRcAPk9MQVgsvXIyV-qJ7cvbpgSz3MzbC_ui0cPGDe7CLZIyPIaF8hEao-sf2Ax/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(37).png)
- The current account deficit (CAD) narrowed significantly to 0.7% of GDP in FY24 compared to 2% the prior year, thanks to a lower merchandise trade gap.
- Even better, the last quarter (Q4 FY24) saw a current account surplus of 0.6% of GDP, likely driven by strong services exports.
- Additionally, foreign portfolio investment turned positive with a net inflow of $44.1 billion in FY24, while net foreign direct investment (FDI) inflow declined compared to the previous year.
Question:
1 According to recent data by RBI, What was the current account deficit (CAD) as a percentage of GDP for India in FY24?
- A) 0.7%
- B) 1.0%
- C) 2.0%
- D) 3.5%