Close to 6% growth on manufacturing picking up in Jan-Mar: Rangarajan
the chief of Prime Minister's Economic Advisory Council (PMEAC) told reporters that CAD should remain more or less of same level of last year level due to high import of gold, coal and oil.
"It should be around this figure. Somewhere around 5 per cent or may be slightly higher. The fact is that Indian economy is growing at fast rate, and the other economy are growing at lower rate. Therefore, our exports ... are affected because of their lower growth.
Whereas our imports are higher, because we are growing at a higher rate. It is this itself, is causing a certain imbalance in the system," he said.
Current account deficit, measured by the difference between country's exports of goods, services and transfers to total import within a time period, was 4.2 per cent in 2011-12. It touched a record high of 5.4 per cent in the July-September quarter (Q2) this fiscal.
"There is also a focused attention on the part of the government to achieve the production and capacity utilisation targets in some of the key infrastructure sectors such as coal, power, roads and Railways.
"And this in my view will act as a stimulant for private economic activity and will result with the growth rate of economy picking up and expect growth rate next year to be seven percent," Rangarajan said.
On gold imports, he said India imported USD 60 billion of the metal in 2011-12.
"If you look at the average in the previous years, it used to
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