CAD at 2.5% of GDP not a worry, govt geared to deal with outflows: FinMin

With rising oil prices, depreciating rupee and outflow of portfolio investments, there are concerns that CAD might rise in the current fiscal

Current account deficit (CAD) at 2.5 per cent of gross domestic product (GDP) won’t be a worry as the government has the required instruments to deal with any imbalance created due to foreign fund outflow, Economic Affairs Secretary Subhash Chandra Garg said on Tuesday.

“2-2.5 per cent CAD is not a problem for us.... If there is stability, in the current year capital account (inflows) should be good enough to take care and we may not worry even if it (CAD) reaches 2.5 per cent,” Garg said.

CAD, which is the difference between the inflow and outflow of foreign exchange,