Data Source: Financial Express

 

Even as its neighbour China keeps recording current account surplus after surplus, India does not have even a fraction of that advantage. On the contrary, its external debt, one of the means to finance its current account deficit has constantly been on the rise. As today's chart of the day shows, India's external debt moved up to US$ 365 bn as on Sep 2012, more than 60% high than what it was around 4.5 years back. What more, even the cover that forex reserves provide to external debt reduced to 80% from 85% in March 2012. Clearly, another indication that the country does need to bring down its current account deficit.