CAD to be less than 3%: Montek

Written by PTI | New Delhi | Updated: Nov 15 2013, 09:13am hrs
Encouraged by surging exports, Planning Commission on Thursday said the current account deficit will be definitely less than 3% of GDP in the 2013-14 fiscal as per its latest assessment.

I think that the current assessment is that it is definitely less than 3%. That is our assessment, Planning Commission deputy chairman Montek Singh Ahluwalia said.

The CAD, which is the difference between outflow and inflow of foreign exchange, touched an all-time high of $88.2 billion or 4.8% of the GDP in 2012-13.

Earlier, the government had projected CAD at $70 billion for 2013-14, but was revised downwards to $60 billion by finance minister P Chidambaram because of declining gold imports and recovery in exports.

The Reserve Bank said on Wednesday that CAD in 2013-14 will be $56 billion and there was no fundamental reason for the rupee depreciation.