Plan panel member positive on Q2 CAD in India, sees fall

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Sales man attends to a customer at a jewellery store in Bangalore. (AP) Sales man attends to a customer at a jewellery store in Bangalore. (AP)
SummaryThe September quarter CAD is not going to be double digits: Saumitra Chaudhuri

Current account deficit (CAD) in India, which came in below expectations for the June quarter at 4.9 per cent, will narrow further to under USD 10 billion in the September quarter on an uptick in exports and lower gold imports, a plan panel member said today.

"The September quarter CAD is not going to be double digits. It's going to be less than USD 10 billion," Saumitra Chaudhuri, a member of the Planning Commission and PM's economic advisory council said here late this evening.

When asked about the factors which will drive CAD in India down, he said, "On the one side there will be increase in exports and on the other side some containment in unproductive import like gold."

He said the trade deficit will also narrow down to USD 33- 34 billion for the September quarter from the USD 50 billion in the previous quarter.

"I have the trade numbers for three months, for July and August and I can guess for September. Basically you will get a trade deficit of around USD 33-34 billion in three months," he said at an Export Credit Guarantee Corporation event here.

Addressing the same event, Commerce Secretary Sumit Bose said there is an urgent need for integrating the markets within the country and ensure a smoother flow of goods between the states.

To boost entrepreneurs to strive to make good quality products, he said there is also a need to make adherence to standards compulsory.

Right now, it is voluntary to abide by the Bureau of Indian Standards regulations and a amendment to make it compulsory has been pending in Parliament for three years, he said.

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