Current a/c deficit biggest concern of Infdia

vJune 13 Quarter deficit increased to USD 21.8 Billion ( 4.9% of GDP ). June 12 it was 4% of GDP  

 

v CAD rise was mainly due to rise in Trade deficit  ( Particularly  exceptionally  high Gold Import in April & May )

 

v Based on the measures taken to restrict Gold Import CAD is expected to improve in September quarter

 

v FY 14 CAD is expected to be with in USD 70 Billion ( 3.8% of GDP as against 4.8 % seen in FY13

 

v Higher CAD is the key reason for INR depreciation  (shortfall is not getting financed  due to low Capital A/c inflow)