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What is Current Account Deficit (CAD)? — Meaning, Definition & Example

Definition

CAD occurs when a country's imports of goods, services, and transfers exceed its exports. India typically runs a CAD because it imports more than it exports (especially crude oil). A high CAD can weaken the rupee.

💡 Real Example

India's CAD of 1.2% of GDP in FY25 was manageable, largely due to strong IT services exports and remittances offsetting the trade deficit.

🇮🇳 Current Account Deficit (CAD) in Hindi / हिंदी में

चालू खाता घाटा — CAD तब होता है जब किसी देश का आयात उसके निर्यात से अधिक हो जाता है। भारत आमतौर पर CAD में रहता है क्योंकि वह निर्यात से अधिक आयात करता है।

Current Account Deficit (CAD) (Hinglish) — CAD tab hota hai jab ek country ka imports uske exports se zyada ho jaaye. India typically CAD mein rehta hai kyunki crude oil ka import bahut zyada hai.

❓ Frequently Asked Questions

What is Current Account Deficit (CAD) in simple words?
CAD occurs when a country's imports of goods, services, and transfers exceed its exports. India typically runs a CAD because it imports more than it exports (especially crude oil). A high CAD can weaken the rupee.
Can you give an example of Current Account Deficit (CAD)?
India's CAD of 1.2% of GDP in FY25 was manageable, largely due to strong IT services exports and remittances offsetting the trade deficit.
What is Current Account Deficit (CAD) meaning in Hindi?
In Hindi, Current Account Deficit (CAD) is called चालू खाता घाटा. CAD तब होता है जब किसी देश का आयात उसके निर्यात से अधिक हो जाता है। भारत आमतौर पर CAD में रहता है क्योंकि वह निर्यात से अधिक आयात करता है।