In 2022-23, India's exports of goods were ₹18 lakh crore and imports of goods were ₹22 lakh crore. After liberalisation measures, exports increased by 12% and imports increased by 7%. Calculate the change in current‑account balance (in ₹ lakh crore) due to these changes.

Step-by-step solution

1. Calculate initial current account: 18 – 22 = –4 lakh crore (deficit).
2. Increase exports by 12%: 18 × 1.12 = 20.16 lakh crore.
3. Increase imports by 7%: 22 × 1.07 = 23.54 lakh crore.
4. Compute new balance: 20.16 – 23.54 = –3.38 lakh crore.
5. Find change: (–3.38) – (–4) = +0.62 lakh crore improvement.

Concept tested: effect of liberalisation on trade balance

Published 1 October 2026 · How this solution was prepared and checked