BackManmohan Singh warns about high current account deficit
Singh said India should plan to finance around $90 bn of CAD this fiscal by targeting higher capital inflows
Premium(Ramesh Pathania/Mint)
New Delhi: India should brace itself for a large current account deficit (CAD) this fiscal year, although it may narrow slightly from last year, Prime Minister Manmohan Singh said on Wednesday.
Fiscal expansion has led to the widening of the current account deficit, which may stand at around 5% in 2012-13, Singh said while inaugurating the annual meeting of the Confederation of Indian Industry (CII).
The Reserve Bank of India data showed the current account deficit had expanded to a record 6.7% of gross domestic product (GDP) in the third quarter of the last fiscal.
Singh said the country should plan to finance around $90 billion of CAD in the current fiscal by targeting higher capital inflows. “We will take all steps to to ensure that inflows remain strong in next two years," he added.
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