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The Chief Economic Advisor, Raghuram Rajan today said that Current Account Deficit (CAD) in the fourth quarter (Jan-March) 2012-13 would be below 4%. He also said that for the full financial year, 2013-14 it is likely to be below 5%.
“First it will come down below 5% this year. We have to bring it below 4% next year. And even lower thereafter,” he told reporters.
The Current Account Deficit breached all records to touch an all-time high of 6.7% of the gross domestic product during the third quarter of 2012-13. It stood at 5.4% in the first nine months of
Rajan also said gold that prices which have come down recently may pick up again during the wedding season, but if oil stays at the current level government will get some relief.
He also pitched for 49% FDI in the insurance sector.
