Question

In: Finance

India's Current Account Assumptions​ (millions USD) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013...

India's Current Account

Assumptions​ (millions USD)

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

​Goods: exports

​77,939

​102,175

​123,876

​153,530

​199,065

​167,958

​230,967

​307,847

​298,321

​319,110

​329,633

​Goods: imports

​-95,539

​-134,692

​-166,572

​-208,611

​-291,740

​-247,908

​-324,320

​-428,021

​-450,249

​-433,760

​-415,529

     Balance on goods

​-17,600

​-32,517

​-42,696

​-55,081

​-92,675

​-79,950

​-93,353

​-120,174

​-151,928

​-114,650

​-85,895

​Services: credit

​38,281

​52,527

​69,440

​86,552

​106,054

​92,889

​117,068

​138,528

​145,525

​148,649

​156,252

​Services: debit

​-35,641

​-47,287

​-58,514

​-70,175

​-87,739

​-80,349

​-114,739

​-125,041

​-129,659

​-126,256

​-137,597

     Balance on services

​2,640

​5,241

​10,926

​16,377

​18,315

​12,540

​2,329

​13,487

​15,866

​22,393

​18,656

​Income: credit

​4,690

​5,646

​8,199

​12,650

​15,593

​13,733

​9,961

​10,147

​9,899

​11,230

​11,004

​Income: debit

​-8,742

​-12,296

​-14,445

​-19,166

​-20,958

​-21,272

​-25,563

​-26,191

​-30,742

​-33,013

​-36,818

     Balance on income

​-4,052

​-6,650

​-6,245

​-6,516

​-5,365

​-7,539

​-15,602

​-16,044

​-20,843

​-21,783

​-25,815

Current​ transfers: credit

​20,615

​24,512

​30,015

​38,885

​52,065

​50,526

​54,380

​62,735

​68,611

​69,441

​69,786

Current​ transfers: debit

​-822

​-869

​-1,299

​-1,742

​-3,313

​-1,764

​-2,270

​-2,523

​-3,176

​-4,626

​-4,183

     Balance on current transfers

​19,793

​23,643

​28,716

​37,143

​48,752

​48,762

​52,110

​60,212

​65,435

​64,815

​65,603

Note​:

The IMF has recently adjusted their line item nomenclature. Exports are all now noted as​ credits, imports as debits.

The balance on services for year 2007 is​ (in millions) ​$ ----- (Round to the nearest integer and enter any deficit with a negative​ sign.)

The balance on services for year 2008 is​ (in millions) ​$ ----- ​(Round to the nearest integer and enter any deficit with a negative​ sign.)

The balance on services for year 2011 is​ (in millions) ​$ ----- ​(Round to the nearest integer and enter any deficit with a negative​ sign.)

Solutions

Expert Solution

:: Solution ::

India's current account balance for year 2007​ (In Millions USD) -8077
India's current account balance for year 2008 (In Millions USD) -30973
India's current account balance for year 2014 (In Millions USD) -27452
Assumptions (millions USD) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
a Goods: exports 77939 102175 123876 153530 199065 167958 230967 307847 298321 319110 329633
b Goods: imports -95539 -134692 -166572 -208611 -291740 -247908 -324320 -428021 -450249 -433760 -415529
c      Balance on goods (a+b) [A] -17600 -32517 -42696 -55081 -92675 -79950 -93353 -120174 -151928 -114650 -85896
d Services: credit 38281 52527 69440 86552 106054 92889 117068 138528 145525 148649 156252
e Services: debit -35641 -47287 -58514 -70175 -87739 -80349 -114739 -125041 -129659 -126256 -137597
f      Balance on services (d+e) [B] 2640 5240 10926 16377 18315 12540 2329 13487 15866 22393 18655
g Income: credit 4690 5646 8199 12650 15593 13733 9961 10147 9899 11230 11004
h Income: debit -8742 -12296 -14445 -19166 -20958 -21272 -25563 -26191 -30742 -33013 -36818
i      Balance on income (g+h) [C] -4052 -6650 -6246 -6516 -5365 -7539 -15602 -16044 -20843 -21783 -25814
j Current transfers: credit 20615 24512 30015 38885 52065 50526 54380 62735 68611 69441 69786
k Current transfers: debit -822 -869 -1299 -1742 -3313 -1764 -2270 -2523 -3176 -4626 -4183
l      Balance on current transfers (i+j) [D] 19793 23643 28716 37143 48752 48762 52110 60212 65435 64815 65603
j India's current account balance [E = A+B+C+D] 781 -10284 -9300 -8077 -30973 -26187 -54516 -62519 -91470 -49225 -27452

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