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