Press Esc to close
Thursday 28 May 2015
News updated at 11:41 PM IST
Weather
Max: 33°C
Min : 22.3°C
In Bengaluru
Sunny day

CAD to fall below 3.8% this fiscal, says Montek

New Delhi, October 20, 2013, PTI

Adds stress on rupee to be much less

Montek Singh Ahluwalia

Current Account Deficit (CAD) is likely to be lower than the projection of 3.8 per cent of the GDP and India will be in a better position to neutralise the impact of the tapering of monetary stimulus by the US Fed, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.

“The bottom line on CAD is that news is very good. It will be lower than 3.8 per cent,” Ahluwalia said.

During 2012-13, the CAD was at an all-time high of 4.8 per cent of GDP or $88.2 billion. The government proposes to bring it down to $70 billion or 3.8 per cent of the GDP.

Elaborating further, Ahluwalia said, “Taper is delayed. Secondly, the CAD looks good. By the time taper happens, we are going to look in much better shape.. now rupee has come to a much more maintainable position. So the threat on the rupee will be much less as and when the taper happens. So we will be in a better situation (next year).”

Tapering refers to gradual withdrawal of monetary stimulus by the US Federal Reserve. The reversal of the easy money policy by the US is expected to impact the global markets as well as the economy.

Asked about the Planning Commission Member Saumitra Chaudhuri’s projections that CAD will be 2.5 per cent or range between $40-45 billion, Ahluwalia said, “It is not the Planning Commission’s estimate. This is his personal estimates.”

However, supporting Chaudhuri’s estimates, he said, “If you view the growth grooming because of agriculture and (its) impact on non-agriculture demand which is not very import-intensive, then current account deficit may be lower.”

Elaborating further, he said, “The Finance Ministry made this projection (of CAD) six months ago...When the Finance Ministry made its projection, may be, it had a higher assumption of growth. The problem is that growth is low. The imports are affected because of growth.”

During the first quarter (April-June) this fiscal, the Indian economy grew at 4.4 per cent lower than 4.8 per cent in the previous (January-March) quarter. The economy has grown at a decade low rate of 5 per cent last fiscal. The government expects the growth to range between 5 and 5.5 per cent this fiscal.


Go to Top

Photo Gallery
Devotees arrive at Sangam to take holy bath in Ganga River

Devotees arrive at Sangam to take holy bath in Ganga River

Students celebrate their success after the announcement of CBSE class 10th results...

Students celebrate their success after the announcement of CBSE class 10th results...

Monkeys drink water from a tap on a hot day...

Monkeys drink water from a tap on a hot day...

Bollywood actors Arjun Kapoor, Shahid Kapoor, Sonakshi Sinha, Anil Kapoor and Hrithik Roshan...

Bollywood actors Arjun Kapoor, Shahid Kapoor, Sonakshi Sinha, Anil Kapoor and Hrithik Roshan...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Throne...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Throne...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar and Pramoda Devi Wadiyar....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar and Pramoda Devi Wadiyar....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Chariot...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Chariot...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar perform a Yagna during....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar perform a Yagna during....

Relatives of Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar ...

Relatives of Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar ...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday....

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday....

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523