Context: In the context of ongoing pandemic, Indian economy saw a record current account surplus mainly due to contracting domestic demand, (negative sign for Indian economy) and falling prices in global commodity markets (favours Indian economy).
Importance of commodities in Indian import basket:
Effects of low commodity prices:
Associated concerns:
Conclusion: Demand for many commodities will increase as India becomes more prosperous. Therefore, for more permanent comfort, India must reduce its vulnerabilities to commodity prices by producing more in India.