| Date: |
15-02-2013 |
| Subject: |
India deficit ‘may exceed’ 4.2% of GDP |
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NEW DELHI Amid widening trade gap, the Current Account Deficit (CAD) this year is likely to exceed 4.2 per cent of GDP recorded in 2011-12, said Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan on Thursday.
“The CAD will be higher than last year’s level. We expect the third quarter figures will also be high, but it could come down in the fourth quarter,” Rangarajan said.
CAD, which represents the difference between inflows and outflows of foreign currency, had touched a record high of 5.4 per cent of GDP in the July-September quarter.
Trade deficit in January widened to $20 billion, the second highest rise ever in a month. The biggest trade gap of $21 billion was recorded in October.
High import of gold is adding to the CAD despite efforts by the Government to check the import of the precious metal. Gold accounts for second largest import in value terms after oil.
Source : omantribune.com
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