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Chidambaram says current account deficit will be contained at $60 billion

Chidambaram says current account deficit will be contained at $60 billion

In a big relief on the economic front, the government has revised the current account deficit or CAD target this fiscal to $60 billion, considerably lower than the $70 billion estimated earlier.

Finance Minister P Chidambaram said at a press conference that the CAD was now well under control, helped by a sharp pick-up in exports in the last three months.

Here are the highlights of what the Finance Minister said:

  • Current account deficit well under control, I'm confident we will be able to adhere to red line for fiscal deficit

  • The steps taken in the past few months are starting to show results

  • Inflation is still a challenge and reviving investment

  • We see greenshoots even in investment and we are confident that the steps taken by RBI will bring about a moderation in inflation

  • Investor confidence in India remains intact

  • Trade deficit April-Sept $80 billion lower than $92 billion last year

  • Sharp pick up in exports in last three months

  • Trade balance will be well contained, will reflect on current account deficit

  • Current account deficit will be contained at $60 billion

  • Earlier current account deficit target was $70 billion

  • Agricultural credit has increased by 12.1 per cent, which is very satisying

  • Core sector data encouraging, hope core sector will do well

  • In six months 99 projects have been cleared worth Rs 3.68 lakh crore by the Cabinet Committe on Investments (CCI)

  • Situation prior to May 22, 2013 and the situation afterMay 22, 2013 is entirely different

  • I'm happy that in two policy statements the RBI has been able to withdraw liquidity tightening steps

  • The markets seem to have welcomed the RBI and the government's measure

  • I would caution investors against excessive exuberance over market rally

  • The rupee has by and large stabilised, but it is still a little over the appropriate exchange rate

  • I look forward to stability in currency, stable markets

  • I look forward to moderation of inflation

  • We have evidence to show inflation is fuelled by food inflation

  • FDI inflows have been encouraging

  • Indian industry must now not any longer sit on idle cash but start investing

  • Look forward to more FDI inflows in pharmaceutical sector, single brand retail, multi brand retail and telecom sectors

  • Look forward to pass the following bills in the winter session of Parliament: Bill to replace the Sebi ordinance and the Insurance Bill

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