INDIA’S CURRENT ACCOUNT BALANCE SINCE 1991

Abstract

Current account plays a crucial role in the economic growth of a country. In India, current account deficit had shown a danger sign during 1980s which culminated balance of payments crisis in 1991. Since then, most of the years, India has experienced negative current account balance. Though for the developing countries, like India, current account deficit up to certain limits is not a serious issue but beyond these limits, it is a cause of concern for the country. However, in case of India, during the recent past, the current account deficit has been increasing steadily and causing an alarming sign among the economic pundits. Thus, it has become a crucial area to study and suggest some policy measures. The present paper is a humble attempt to examine the dynamics of Indias current account balance over the last 23 years i.e. 1991 to 2013.