Move to have $8-10 bn impact, says DEA secy; non-essential imports to be reduced; more initiatives soon
India's CAD is structural. Growth is not driven by exports
The worst may be yet to come as the crude import bill for India surged 76% in July from a year earlier to $10.2 bn
In value terms, the CAD was higher at $15.8 billion in April-June this year as against $15 billion in the same quarter of 2017-18
The merchandise trade imbalance is also expected to rise to USD 188 billion in FY19, compared with USD 160 billion in FY18
In the June quarter of FY18, CAD was $ 15 billion, and for the full year of FY18 it stood at 1.9 per cent of the GDP, Icra said in its report
The government's approach to the crucial exports sector has been alternately backward-looking and coercive
India's CAD rose sharply to $14.3 bn -- 2.4% of GDP -- at the end of first quarter of 2017-18
Widening of CAD primarily due to a higher trade deficit at $41.2 bn, says the central bank
The report said despite the wider current account deficit, financing is not a concern
Said India's trade deficit narrowed to $13 bn in June from $13.8 bn in May, wider than expected
The key risks are rise in protectionism, weaker global growth or a surge in oil prices
The country's trade deficit narrowed to $112.4 billion in 2016-17
Gap between forex earnings, expenses is narrowed from $8 billion in third quarter of FY17
Deficit rose from $3.4 billion, or 0.6% of the GDP, in the July-September period
CAD widened primarily on account of a decline in net invisible receipt
Net oil imports are expected to expand by 24 per cent to $67 bn in 2017-18 from $54 bn in 2016-17
But on a sequential basis CAD higher than the $0.3 bn in April-June
Gold imports rose to $3.5 billion from $1.8 billion last month as jewellery demand increased in the festive season
Contraction due to lower trade deficit; balance of payments stays positive