India’s Current Account Gap Viewed as Savings‑Investment Gap, Not Weakness

According to Mishra, a current‑account deficit should not be interpreted as a sign of economic frailty. Instead, it reflects the difference between domestic savings and investment needs. He clarified that a deficit creates a liability, which can be met either by selling assets or by borrowing. The borrowing may come from foreign portfolio investors, private‑equity funds, ECBs, or foreign investors purchasing Indian bonds.