The sept 12 ( Q2/FY13) Current account deficit data is released . The CAD has increased substantially in the July~Sept period as against the previous quarter .One quarter CAD stood at USD 22.3 Billion as against USD 16.4 Billion in the ( April~June ) quarter .
Export has degrown by 12% YOY in sept quarter whereas Import has degrown by only 4% . During this period in 2011 position was very strong . Export was growing at 45% and Import growing at 35% . Support is coming from service sector which has shown growth of 12% in realisation . So now we are at 5.4% in CAD deficit as compaired to GDP which was only 4.2% in sept 11 .
High current account deficit will seriously impact the Rupee and unless significant change happen Rupee may see some pressure in first quarter itself .
The way Gold import is increasing , Govt need to take steps to discourage it to improve CAD ratio.
Export has degrown by 12% YOY in sept quarter whereas Import has degrown by only 4% . During this period in 2011 position was very strong . Export was growing at 45% and Import growing at 35% . Support is coming from service sector which has shown growth of 12% in realisation . So now we are at 5.4% in CAD deficit as compaired to GDP which was only 4.2% in sept 11 .
High current account deficit will seriously impact the Rupee and unless significant change happen Rupee may see some pressure in first quarter itself .
The way Gold import is increasing , Govt need to take steps to discourage it to improve CAD ratio.
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