Question

In which of the following year India had a surplus in its current account?

• A. 2018-19
• B. 2019-20
• C. 2020-21
• D. 2021-22

Hint:

India's current account surplus in 2020-21 was primarily due to lower imports and higher remittance inflows during the pandemic.

Answer 1

The Correct Option is C

Step 1: India's Current Account Balance in 2020-21.
India recorded a current account surplus for the fiscal year 2020-21. This surplus was primarily driven by decreased import levels amid the COVID-19 pandemic and a rise in remittances. Such a surplus is uncommon, as India typically experiences a current account deficit.

Step 2: Evaluation of Financial Years.
- (A) 2018-19: India's current account was in deficit.
- (B) 2019-20: India's current account was in deficit.
- (C) 2020-21: India's current account was in surplus, aligning with the observed data.
- (D) 2021-22: India's current account was in deficit.

Step 3: Determination.
Option (C) is the correct choice, as India's current account registered a surplus during the 2020-21 fiscal year.