Trade and current account deficits not going out of hand:PM

He also ruled out setting up of a financial sector development council saying the country's reforms were well thought of.

"We have a trade deficit of about 7 to 8 per cent of our gross domestic product. We have a current account deficit of about 2.5 to 3 per cent of our GDP. We are not piling up reserves. Though we are not creating any problem on the functioning of the global system.

"We are not surplus in that sense. We have a deficit but our deficit will and has been managed within limits of prudence," he told reporters accompanying him from Seoul where he attended the G20 summit.

Singh said capital flows can create problems but India was not in that stage where capital flows can become a major problem."We will manage our affairs in such a manner that capital flows do not give rise to the type of inflationary problem," he saidTo a question whether Government would consider setting up a financial sector development council Singh said there is no such possibility.

"Our reforms are well though of. They were in response to the needs of the time. And our requirements will be the sole determinant of what type of reforms we wish to do," he said.
The Prime Minister said India needs a reform system which is internationally accepted because there was a way in which an interdependent world can manage flows of capital from one country to another.