Current account balances are deteriorating as percentage of GDP.

One of the reasons that led to the steep fall in the Argentinian peso has been a large current account deficit. And as today's chart of the day shows, deteriorating current account balances seems to be a problem affecting many of the countries both in the developed and developing world. India's current account deficit is also not small by any standard. So far, imports have been rising mostly because of oil and gold, while exports have failed to catch up. The government so far has tried to correct the situation by putting curbs on gold imports. But from a longer term perspective, a much more constructive move will have to be employed. And this would largely mean making exports more competitive.