RBI chief says current account deficit unsustainable
BANGALORE (Reuters) - India's current account deficit is unsustainable at its present level of about 5 percent of gross domestic product (GDP), the head of the Reserve Bank of India said on Saturday, adding that a deficit of about 2.5 percent of GDP would be sustainable.
India's current account deficit hit a record $32.63 billion in the last three months of 2012, and stood at $71.7 billion for the April-December period, equivalent to 5.4 percent of GDP.
The deficit for the fiscal year that ended on March 31 is unlikely to be less than 5 percent, Duvvuri Subbarao, governor of the Reserve Bank of India, added in a speech in Bangalore.
The decision by new Bank of Japan Governor Haruhiko Kuroda to inject about $1.4 trillion into the Japanese economy in less than two years is seen possibly increasing capital flows into India, which should help finance the current account deficit, government officials told Reuters this week.
(Reporting by Harichandan Arakali; Writing by Henry Foy; Editing by Robert Birsel)
- Tweet this
- Share this
- Digg this
- U.S. drug regulator approves headband device to prevent migraines
- Malaysia military source says missing jet veered to west
- UPDATE 3-Time running out for EU bid to engage Russia, Germany warns
- When Zach met Barack: pitching Obamacare online
- Up to $600,000 taken from Houston's Lakewood megachurch safe
Consumer inflation and industrial output data on Wednesday will likely offer little evidence of a respite from high inflation and weak economic growth before a general election that begins next month. Full Article
India halts plan to join global bond indexes, defers Euroclear - sources. Full Article
EXCLUSIVE - India to slash Iran oil imports to meet nuclear deal parameters: sources. Full Article