Keen to curb imports which has exerted undue pressure on trade and current account deficits, the government has constituted a committee to suggest ways to restrict Indian imports to only necessary items.
The committee, headed by Joint Secretary (Budget) in the Ministry of Finance, is expected to submit its report in a fortnight’s time.
India’s CAD hit 4.8 per cent of gross domestic product in the previous fiscal year. Although the government has time and again said that the widening CAD will be fully financed without dipping into foreign exchange reserves, some stern measures need to be taken to ensure the deficit is safely financed.
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