RBI chief says current account deficit unsustainable

BANGALORE Sat Apr 6, 2013 7:27pm IST

Reserve Bank of India (RBI) Governor Duvvuri Subbarao attends the monetary policy review meeting in Mumbai January 24, 2012.REUTERS/Danish Siddiqui/Files

Reserve Bank of India (RBI) Governor Duvvuri Subbarao attends the monetary policy review meeting in Mumbai January 24, 2012.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

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)

FILED UNDER:

Religion and Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage