The current account deficit, which is the difference between inflow and outflow of foreign exchange, rose to a record high of 4.8 per cent of GDP in 2012-13, from 2.8 per cent in 2010-11.
Finance Minister P Chidambaram on Monday said the currency will find its level as steps being taken by the government to contain fiscal and current account deficits will improve investor sentiments.
Coming to the oil situation, the developments in Iraq are worrying because the outcomes are completely unpredictable at this point.
Due to a spike in crude oil prices and the govt's high fiscal deficit
Expressing serious concerns over the current account deficit touching a record 4.8 per cent in 2012-13, India Inc on Thursday asked the government to take all policy measures, including boosting exports and foreign exchange inflows to bring down CAD.
Interview with Asia-Pacific economist, Morgan Stanley
Positive for banking, infra, FMCG and real estate.
Global risk aversion and India's widening current account deficit have dragged the rupee close to all-time low.
Exports in January 2014 stood at $26.89 billion.
The current account deficit is the difference between inflow and outflow of foreign exchange.
Tactical investors should have an investment horizon of around six months to one year, long-term investors should stick around for 10 years or more.
Moody's Investors Service on Friday affirmed India's rating at the lowest investment grade of 'Baa3', with a stable outlook, saying high growth will support a gradual increase in income levels, but flagged risks of populist policies due to rise in political tensions. Moody's said although India's potential growth has come down in the past 7-10 years, the growth would outpace all other G20 economies through at least the next two years, driven by domestic demand. Moody's said the restoration of robust growth prospects post-pandemic, the effective commitment to inflation targeting and the rehabilitation of the financial system aided by reform supports its view of strengthening monetary and macro policy effectiveness.
Mumbai, May 14 (PTI) The massive spike in trade deficit caused by sharp rise in gold imports in April would not sustain and there is no need to get excessively worried over the data, analysts have said. They also said the current account deficit or the difference between the foreign exchan ...
Imports of gold and silver in February 2013 stood at $5.24 billion. In January this year, they were $1.72 billion.
Chidambaram said he expected gold imports to touch $40 billion in the current fiscal year to end-March, down 31 percent from the year-ago bill of $58 billion.
India's current account deficit narrowed sharply to just $300 million
Looking under the hood, I see India on the terrible, but commonplace, road to prosperity failure, warns Rathin Roy.
The Union government's fiscal deficit works out to be Rs 5.47 lakh crore or 36.3 per cent of the budget estimates at the end of October 2021 on the back of improvement in revenue collection, according to the data released by the Controller General of Accounts (CGA) on Tuesday. The deficit figures in the current fiscal appear better than the previous financial year when the gap between expenditure and revenue had soared to 119.7 per cent of the last year's Budget Estimates (BE) mainly on account of a jump in expenditure to deal with the COVID-19 pandemic. In absolute terms, the fiscal deficit was Rs 5,47,026 crore at the end of October, the CGA said.
The government and the Reserve Bank had also imposed certain other restrictions on its shipments, including linking of imports to exports to prevent outgo of the foreign exchange.
India is projected to see moderate average annual growth of 5.9 per cent during the 2014-18 period amid the country witnessing macroeconomic weaknesses, according to Paris-based think tank OECD.
The eight years and more since 2004-05 have seen a continuous non-oil trade deficit, the first such period since the 1980s.
Gold and silver imports declined 80.55 per cent to $1.05 billion in November after a slew of measures taken by the government to curb inbound shipments of the metal, aimed at narrowing the current account deficit.
The Finance Ministry on Wednesday described the sharp fall in the value of the rupee as a reflection of "irrational sentiment" and said there is no need for panic.
India's exports contracted 12.2 per cent to $34.48 billion in December 2022, mainly due to global headwinds, and the trade deficit widened to $23.76 billion during the same period, according to official data released on Monday. Imports in December 2022 also declined 3.5 per cent to $58.24 billion as against $60.33 billion in the year-ago period. In December 2021, exports stood at $39.27 billion and the trade deficit was at $21.06 billion.
A govt report on Wednesday recommended reining in gold imports to curb deficit.
Do you have financial planning or income tax queries? Ask rediffGURU Anil Rego.
The rupee's slide was predictable in direction, if not in timing. It has been obvious for months that India was vulnerable to depreciation. A combination of European weakness and bearish FII attitudes were the triggers.
India's exports have fallen since last year as demand slowed from major sales destinations, adding to the country's economic gloom and heightening worries about its trade and current account deficits.
India's fiscal deficit is projected to more than double to 6 per cent of GDP this fiscal against the budgetary target of 2.5 per cent. For the next fiscal, the deficit is estimated to be 5.5 per cent of GDP.
Two major events, the general elections and the impact of US tapering, will dictate the direction of the Indian markets.
It forecasts better growth on the back of stronger external demands and progress on reforms.
The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports
Goldman Sachs downgraded its rating on Indian stocks to 'underweight'.
Ashok Chawla outlined the key thrust areas of Budget 2011.
Veerappa Moily's suggestions on oil use do not inspire hope
Balance of payment stood at a surplus of $30.1 billion during January-March
Balance the corporate expectations while at the same time being populist, says Milan Parekh.
A potential risk to the rupee's appreciation trajectory lies in the event of a delay in the Federal Reserve's rate cut cycle, particularly if core inflation in the US remains elevated.
According to HSBC, the volatility in Indian markets since May can be attributed to the initial talk about tapering of bond purchase by the US Federal Reserve but the catalyst for recent volatility in Indian equities was when policymakers decided to tighten liquidity to stem capital outflows.
To help cut down on current account deficit.
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