CAD of 2.5-3% can be sustained without external sector crisis: RBI DG Patra

India's economy is predicted to overtake that of the US by 2048, said Patra

India can tolerate a Current Account Deficit (CAD)of 2.5-3.0 per cent of GDP without experiencing an external sector crisis, Reserve Bank of India Deputy Governor Michael Patra said on Saturday.

“In a telling reminder of this fact, a record increase in oil prices and high gold imports took the current account deficit above this Plimsoll line and to historically high levels during 2011-13,” Patra said at an event in Bhubaneshwar celebrating 75 years of India’s independence.

“When the US Federal Reserve contemplated the end of easy monetary policy in the summer of 2013, India faced the taper tantrum and