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How India’s Current Account Surplus Impacts Economy

Struggling to keep up with current affairs for competitive exams? India’s $13.5 billion current account surplus in Q4 FY25 is a game-changer for the economy—and your exam prep! This complete guide breaks down the RBI’s latest data, its implications, and how MyEntrance.in helps you ace online preparation with the best site to learn key concepts.

Why Is This Important for Exams?
SSC/Banking/PSC Exams: Frequently test economic trends, RBI reports, and GDP-related data.
NID/NIFT/FDDI: General awareness sections often include national economic developments.
Interview Stages: Questions on India’s fiscal health are common for government jobs.
Current Affairs Weightage: Contributes 5–10 marks in most competitive exams.

Key Highlights of India’s Current Account Surplus (Q4 FY25)
Surplus: $13.5 billion (1.3% of GDP) vs. $11.3 billion deficit in Q3 FY25.
Merchandise Trade Deficit: Reduced to $59.5 billion (from $79.3 billion in Q3).
Services Exports Boom: $53.3 billion earnings (led by IT and business services).
Remittances Rise: $33.9 billion from overseas Indians, boosting surplus.
FDI Decline: Net inflows dropped to $0.4 billion (from $2.3 billion YoY).

Sample Questions & Answers for Exam Prep
Q: What was India’s current account balance in Q4 FY25?
A: $13.5 billion surplus (1.3% of GDP).
Q: Which sector drove India’s services exports growth in Q4 FY25?
A: Computer and business services.
Q: How did remittances impact the current account surplus?
A: Increased to $33.9 billion, strengthening the surplus.
Q: What caused the merchandise trade deficit to shrink in Q4?
A: Lower imports and higher services exports.
Q: Why is a current account surplus significant for the rupee?
A: Reduces reliance on foreign borrowing, stabilizes currency value.

How to Prepare for Entrance Exams?
Mastering current affairs and economic concepts is easier with MyEntrance.in! We provide:
✅ Most predicted questions based on exam trends.
✅ Topic-wise breakdowns for easy preparation.
✅ Free mock tests to gauge your knowledge.
✅ Daily updates on crucial news for exams.
Pro Tip: Bookmark our “Economy & Current Affairs” section for the latest updates!