Worried over worsening balance of payment situation, the Economic Survey asked the government to take steps to discourage import of gold and consumer goods.
A trade deficit of more than 8 per cent of GDP and current account deficit (CAD) of more than 3 per cent is a sign of growing imbalance in India’s Balance of Payments (BoP), the survey said. India’s gold imports went up by 64 per cent to US$38.3 billion during the April-October period of this fiscal.
BoP summarises transactions between a country and the rest of the world, and the account classifies transactions under two heads - capital account and current account.
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