Rising current account deficit (CAD) has become a chief headache for India in recent times. Indeed, rise in imports, falling exports and decline in the rupee have only made matters worse. So, it is hardly surprisingly that when compared to its peers, India's fared the worse as far as CAD is concerned in the second quarter of 2013. So far, the government has been focusing on short term measures such as placing curbs on gold imports and the like to prevent the gap from widening. But this is hardly going to help from a longer term perspective. For that, the focus will have to be on making exports more competitive and making the country more self reliant as far as energy needs are concerned.
Data Source: The Economist
Data Source: The Economist
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