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India's current account deficit, which stood at 4.9 per cent of the GDP in calendar year 2013, was the third highest in the world in terms of absolute numbers, according to a report by Morgan Stanley.
More importantly, among the emerging economies, India stood right at the top of the table.
At $98 billion, India's current account deficit in absolute numbers stood behind only the US ($473 billion) and the UK ($106 billion).
Among emerging economies, India was followed by Brazil ($58 billion at 2.4 per cent of the GDP), Indonesia ($31 billion at 3.3 per cent) and South Africa ($24 billion at 6.4 per cent).
In percentage terms, Mexico and France had the least current account deficit at 1 per cent and 1.3 per cent, respectively, while Lebanon, Ukraine and Morocco were right on top at 16.1 per cent, 7.9 per cent and 7 per cent.
India has been struggling to control its current account deficit, the difference between the inflows and outflows of foreign exchange in the economy, and will look at containing it at 3.7 per cent of the GDP in the current financial year - at $70 billion.
On Tuesday, Finance Minister P. Chidambaram, in a debate in Parliament, said that controlling the CAD was one of the measures in his 10-point prescription for reviving the economic sentiment and assured that the government will be fully able to finance this deficit.
The government has increased duty on the import of gold and silver in a bid to contain the forex outflow, and also announced a slew of measures including easier overseas borrowing norms to fetch an additional $11 billion this fiscal to bring down its CAD.
As for the steps to increase capital inflows, financial bodies -- IRFC, PFC and IIFCL - were permitted to raise $4 billion collectively through quasi-sovereign bonds for the infrastructure sector, while PSU oil companies were permitted to raise additional external commercial borrowings (ECBs) to the tune of $4 billion.
How worrying is Indias current account deficit - NDTVProfit.com
More importantly, among the emerging economies, India stood right at the top of the table.
At $98 billion, India's current account deficit in absolute numbers stood behind only the US ($473 billion) and the UK ($106 billion).
Among emerging economies, India was followed by Brazil ($58 billion at 2.4 per cent of the GDP), Indonesia ($31 billion at 3.3 per cent) and South Africa ($24 billion at 6.4 per cent).
In percentage terms, Mexico and France had the least current account deficit at 1 per cent and 1.3 per cent, respectively, while Lebanon, Ukraine and Morocco were right on top at 16.1 per cent, 7.9 per cent and 7 per cent.
India has been struggling to control its current account deficit, the difference between the inflows and outflows of foreign exchange in the economy, and will look at containing it at 3.7 per cent of the GDP in the current financial year - at $70 billion.
On Tuesday, Finance Minister P. Chidambaram, in a debate in Parliament, said that controlling the CAD was one of the measures in his 10-point prescription for reviving the economic sentiment and assured that the government will be fully able to finance this deficit.
The government has increased duty on the import of gold and silver in a bid to contain the forex outflow, and also announced a slew of measures including easier overseas borrowing norms to fetch an additional $11 billion this fiscal to bring down its CAD.
As for the steps to increase capital inflows, financial bodies -- IRFC, PFC and IIFCL - were permitted to raise $4 billion collectively through quasi-sovereign bonds for the infrastructure sector, while PSU oil companies were permitted to raise additional external commercial borrowings (ECBs) to the tune of $4 billion.
How worrying is Indias current account deficit - NDTVProfit.com
