- September 16, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Contracting for the sixth straight month, India’s exports slipped 12.66 per cent year-on-year to USD 22.7 billion in August, on account of fall in the shipments of petroleum, leather, engineering goods and gems and jewellery items, as per the government data released
- Trade balance of a country shows the difference between what it earns from its exports and what it pays for its imports.
- If it is in negative that is, the total value of goods imported by a country is more than the total value of goods exported by that country, then it is referred to as a “trade deficit”.
Current Account deficit
- A current account deficit is a trade measurement that says a country imported more goods, services, and capital than it exported.
- It encompasses the trade deficit plus capital like net income and transfer payments.
- Current Account = Trade gap + Net current transfers + Net income abroad