There are clear indications that the current account deficit will be better contained in the next couple of months with exports increasing and imports coming down due to rupee depreciation, Commerce Secretary S R Rao today said.
"Indian rupee depreciation will contain imports further and we expect export going up. We will see better containment of CAD in the next couple of months. The clear indications are already there," Rao said.
Replying to a specific question on the impact of rupee fall on import bills and trade deficit, he said: "Our import bills have started coming down, after a series of measures have been put into place, especially on precious metals and the so-called non-essential imports."
Asked about signing of free trade agreement with the EU, he said, "We expect some momentum because there is a high level discussion sometime in October, and depending on the outcome of that meeting, we will be able to say positively."
About achieving the export target, Rao said, "We should be able to better improve on our export target. However, I can say this for the fact that the US market is improving, which is one of our good trading partners. So, when US economy moves up, there is a distinct possibility of Indian exports also moving up."
"The export scenario overall seemed to be positive and in the next couple of months, we expect a stable rupee exchange rate, because stability helps."
On giving more impetus to the manufacturing sector, Rao said Government is intent on revitalising the domestic manufacturing sector and taking it to the next level.
It was towards giving this impetus to the domestic manufacturing sector that the National Investment and Manufacturing Zones (NIMZ) have been created, he said.
Most NIMZ corridors like Mumbai-Delhi and Chennai-Bengaluru are in the planning stage and the first break is expected to happen in the next couple of months in NIMZs and Japan has evinced interest in partnering with India in NIMZs, Rao added.