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Differentiation 03 (Hindi)
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Abhishek Sharma is teaching live on Unacademy Plus

Abhishek Sharma
✔️ IIT-JEE (Advanced) Qualified | B.Sc, M.Sc (Mathematics) | Mentor of IIT-JEE | 7+ years of Teaching Experience | Mathematical Guruji on YT

Unacademy user
Jatin ji please tell us relation between FDI and CAD..
Samarth Raizada
2 years ago
Ok, so current CAD comprises of TRADE items, that is goods and services (aka invisibles). Any deficit or surplus in a country's trade with the rest of the world with respect to these 2 categories constitutes CURRENT account deficit/surplus. FDI, on the other hand is a component of a country's CAPITAL account, which can be used to balance current account. India has a CURRENT account DEFICIT, but a CAPITAL account SURPLUS (which FDI contributes to), and thus our forex reserves keep augmenting. Hope this helps.
Raja Sekar
2 years ago
thanks dude..