Current Account Deficit To Come Down To 2 percent Of GDP This Fiscal: Rangarajan
HYDERABAD: India's Current Account Deficit (CAD) is expected to be around two per cent of GDP during the current fiscal on the back of slackening imports and increased shipments, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has said.
"Several things have happened. Exports have picked up. Imports have come down not only in relation to gold but also in relation to oil. The CAD would certainly come down below two per cent or around two per cent of the GDP," Mr Rangarajan told PTI here during a recent visit.
Finance Minister P Chidambaram had said while tabling the interim budget that CAD will be contained at $45 billion this financial year, well below the $88 billion level in FY'13.
In the first half (April-September) of 2013-14, CAD narrowed to $26.9 billion (3.1 per cent of GDP) from $37.9 billion (4.5 per cent) in the same period last fiscal.
Both the government and the Reserve Bank of India had taken steps to bring down gold imports, one of the major causes for the widening of the CAD in 2012-13.
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