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?

Answer: [C] 1, 2 & 3

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