D. Subbarao, the Reserve Bank of India Governor warned about the widening Current Account Deficit(CAD) which will most likely be higher than last year. “Today, the external sector is vulnerable. Last year, the CAD was 4.2 per cent of gross domestic product (GDP). This year, in 2012-13, we expect the CAD to be significantly higher than that, historically, the highest CAD measured as a proportion of the GDP,” said Dr. Subbarao.
He warned about financing the CAD through volatile flows instead of getting much of foreign direct investment (FDI).
No comments:
Post a Comment