India buying more Russian crude than ever as West slaps tougher rules on Russian oil exports

[SoulSpokesman]

@pikkuboss

No, we will have a deficit for sure. The net CAD (incl both goods and services) will be about USD 120-140 bn, but it will be offset by about USD 80 billion FDI (60 as equity, 20 as long term debt). We will still have a deficit of 40-60 bn, but as our opening forex reserve was about USD 600 billion or so, we will still scrape through.

Regards

 

[pikkuboss]

@pikkuboss

No, we will have a deficit for sure. The net CAD (incl both goods and services) will be about USD 120-140 bn, but it will be offset by about USD 80 billion FDI (60 as equity, 20 as long term debt). We will still have a deficit of 40-60 bn, but as our opening forex reserve was about USD 600 billion or so, we will still scrape through.

Regards

Trade deficit- Yes
Current account deficit- Miniscule to Zero
Balance of payment- Zero to Positive

The present current account deficit is induced by higher energy prices in global market, which doesn't last long.

Current account deficit in Emerging markets is not much concerning as they have other sources to inward dollars including Remittances, FDIs, FPIs, Loans etc.

@pikkuboss

No, we will have a deficit for sure. The net CAD (incl both goods and services) will be about USD 120-140 bn, but it will be offset by about USD 80 billion FDI (60 as equity, 20 as long term debt). We will still have a deficit of 40-60 bn, but as our opening forex reserve was about USD 600 billion or so, we will still scrape through.

Regards

You forgot remittances which will cross 100 billion this year.