• Indian Rupee Trend:
– Depreciated ~12% vs USD in 2025–26
– Normal annual depreciation trend: ~3–4%

• Exchange Rate Concept:
Determined by relative demand & supply of currencies (trade + capital flows).

•Current Account Deficit (CAD):
Occurs when imports > exports (goods + services).

• Capital Account Surplus/Deficit:
– Surplus: FDI/FPI inflows > outflows
– Deficit: capital outflows exceed inflows

•Twin Deficit Situation:
Simultaneous Current Account Deficit + Capital Account Deficit —> strong pressure on currency.

•Key Mechanism of Rupee Fall:
1. High import bill (esp. oil) —> CAD
2. Foreign investors pulling out —> capital account deficit
– Combined effect = rupee depreciation

•BoP (Balance of Payments):
– Sum of Current + Capital accounts
– Persistent deficit leads to forex reserve depletion

• Capital account can turn deficit even with FDI present
– because portfolio outflows (FPI) are volatile and larger in short term.

#CA2025
#ECONOMY

Komagata Maru Incident of 1914

#HISTORY

HCS : More than 2000 people disqualified because of E option


72 BPSC CANDIDATES: KEEP A NOTE

India's first portable bedside MRI system--> Introduced by AIIMS, New Delhi

#CA2026
#FIRST
👇👇

Prasoon Joshi

#CA2026
#APPOINTMENT

- Nidhi Chhibber= CEO(Additional Charge)

- Ashok Kumar Lahiri= new vice chairperson of NITI Aayog.

Full time members:-
1.Rajiv Gauba,
2.K. V. Raju,
3.Gobardhan Das,
4.Abhay Karandikar
5.M. Srinivas
6.Dr Joram Aniya
7.Dr R Balasubramaniam

#CA2026
#APPOINTMENT
👇🏻👇🏻

Bihar’s performance in PAI 2.0

Link:- https://t.me/bpscweb/43367

#BIHARspecial