India has run a current account deficit in 22 of 23 years. Since 2020 it has absorbed five external shocks - a pandemic, a supply-chain crunch, a European war, a tariff wave and a Gulf war - and the deficit has not once passed 2.4%.
🔹1991: We were about to collapse as a nation at -3.1% CAD.
🔹1997–98 Asian Crisis: CAD remained relatively contained at around 1–1.3% of GDP.
🔹2008 GFC: Despite one of the biggest financial crises in modern history, CAD remained at around 2.6%.
🔹2011–13: Combo of high oil prices, weak exports, strong domestic demand and global turmoil CAD close to 5% of GDP in 2012. One of the reasons why we were part of Fragile 5.
🔹2022: The Ukraine war and energy shock pushed CAD back towards 2–2.4%.
🔹2026: The Hormuz/West Asia crisis has created another major oil and geopolitical shock. Yet in Q1 FY27, India's CAD was only 0.5% of GDP.
Superb Management from current govt. #Economy #Policy
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