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‘CAD will shrink to $50 bn in FY14’

Gold imports, according to Mayaram, fell to 19.3 tonnes in November, from 162 tonnes in May.

New Delhi | Published: January 10, 2014 4:52:25 am

Economic affairs secretary Arvind Mayaram on Thursday said that the current account deficit (CAD) will come down to about $50 billion in the current financial year.
The CAD, which is the difference between inflow and outflow of foreign exchange, touched an all-time high of $88.2 billion or 4.8 per cent of GDP in 2012-13.
“Exports are doing fairly well … month-on-month there might be slight blip here and there, but draw a line it will be straight and secular. It is not curving down. We are quite confident that CAD should be around $50 billion for the financial year,” Mayaram said.
He said the trade deficit, which is the difference between export and import, has narrowed to $9.2 billion in November, from $10.6 billion in October. The CAD in the first half of this fiscal came down to $26.9 billion (3.1 per cent of GDP), from $37.9 billion (4.5 per cent) in H1 of 2012-13. Declining gold imports has also contributed to improvement in the CAD, which dropped to 1.2 per cent in Q2 against 4.9 per cent in Q1.
Gold imports, according to Mayaram, fell to 19.3 tonnes in November, from 162 tonnes in May.

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