With reference to India, consider the following:
1. Lower Trade Deficit
2. Higher Foreign Portfolio Investments
3. Higher External Commercial Borrowings
Which among the above help in lowering the Current Account Deficit?
Lower Trade Deficit is favorable because of a lo import bill. Similarly, both Foreign Portfolio Investments and ECB indicate capital inflows which help in curbing CAD.
This question is a part of GKToday's Integrated IAS General Studies Module