Current account deficit at record 5.4% of GDP in Q2
At this level, the CAD is a record 5.4% of gross domestic product, worse than 4.2% in the same period the previous year. For the nine-month period of April-September, the CAD stood at $38.7 billion or 4.6% of GDP, balance of payments data released by the Reserve Bank of India on Monday showed.
RBI governor D Subbarao had said that a CAD of around 2.5-3.0% is sustainable for the Indian economy. Anything above that has implications for the stability of the external sector.
Exports fell by 12.2% in July-September as compared with a 45.3% growth in the same period the previous year while imports fell marginally by 4.8% compared with a rise of 38.1% in the previous year. The government’s decision to hike import duty on gold in June seemed to have not had a big impact as gold imports stood at $10.46 billion, a fall of just
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