New Delhi : The Current Account Deficit is expected to fall by almost 50% to $45 billion in the current financial year following restrictions on gold imports and the narrowing of trade deficit.
“CAD will be between USD 40-45 billion and there will also be an accretion of USD 10 billion to forex reserves during this fiscal,” a top
finance ministry official told PTI.
Besides, Foreign Institutional Investors have invested Rs 56,560 crore in equities so far in the current fiscal, ending March 31. The government hiked import duty thrice last year to 10 % on gold imports in wake of high CAD which in turn was impacting the value of the rupee. Fiscal deficit is also likely to be contained at 4.7 % of GDP in 2013-14 because of better- than-expected response to the ongoing auction of telecom spectrum, another finance ministry official said.
