the East Asian crisis, the Russian crisis during 1997-98 and post-Pokhran sanctions, Indian economy has shown substantial resilience in withstanding the contagion. Since the 1970s, India's current account has exhibited surplus only on six occasions (Table 3). The deficit has been modest and has remained below 2 per cent of GDP in most years.
Only in 1990-91 on the brink of a balance of payments (BoP) crisis, the CAD to GDP ratio had marginally crossed the 3 per cent mark. Thus, in so many years, India has had a balanced external account that has also been reflected in the corresponding savings-investment gap. In the recent period i.e.