Finance minister P Chidambaram today exuded confidence that India’s current account deficit (CAD) will be contained below $60 billion this financial year as against an earlier estimate of $70 billion.
“We think we can peg it (CAD) at $60 billion or below. I am confident that we can do even slightly better than $60 billion,” he told CNBC Awaaz.
The CAD had touched an all-time high of $88.2 billion, or 4.8 per cent of GDP, in the last fiscal.
The deficit for April-June was at $21.8 billion or 4.9 per cent of GDP.
High gold imports was one of the main reasons that pushed CAD to a record high in the previous financial year.
However, various curbs put in by both RBI and the Centre had helped in containing gold imports this fiscal.