For Quick Alerts
For Daily Alerts

India's CAD tipped to fall below 3.8%; Montek Singh Ahluwalia says

By Religare
India's CAD tipped to fall below 3.8%
India is confident of containing its current account deficit (CAD) below the estimated 3.8 per cent of GDP, the Deputy Chairman of Planning Commission Montek Singh Ahluwalia said, according to reports. "The bottom line on CAD is that news is very good. It will be lower than 3.8 per cent," Ahluwalia said.

India's CAD surged to a record high of 4.8 per cent of GDP or USD 88.2 billion in FY 2012-13. The government's targeted CAD for this fiscal is USD 70 billion equivalent to 3.8 per cent of GDP.

CAD stood at 4.9 per cent of GDP at USD 21.8 billion in Q1FY14; below the expected USD 23 billion.

Falling imports of precious metals such as gold owing to RBI restrictions have helped contain the CAD. At the same time, exports have picked up amid an improvement in the global economy.

With the US central bank likely to delay tapering of QE, such a move is set to benefit emerging market assets and support foreign fund inflows and the Indian rupee, helping to stem the CAD.

"Taper is delayed. Secondly the CAD looks good. By the time taper happens, we are going to look in much better shape. So the threat on the rupee will be much less as and when the taper happens", Ahluwalia added.

Dion Global Solutions Ltd.

Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more