India's current account deficit widens to 16.9bn USdollar

[Pakchina]

"India’s current account deficit (CAD) widened to near record in the second quarter of the current fiscal year from the previous three-month period, as trade gap surged on account of higher imports.

The shortfall in the country's trade and investment flows stood at US$16.89bn in the three months ended September 30, 2011, the Reserve Bank of India (RBI) said in a statement today.

That is almost unchanged from a revised US$16.9bn CAD in the July-September quarter of last fiscal year, but higher than US$15.8bn CAD in the preceding quarter.

The CAD was 3.6% of GDP during April-September 2011-12.

The CAD could worsen further in the coming months due to a combination of a slowing global economy and near 16% drop in the rupee this year.

It may be recalled that India’s export growth slumped to a two-year low in October.

The rupee closed almost unchanged today at 53.0650 a dollar from the previous close.

Imports in the three months ended Sept. 30 registered a growth of 35.4% compared with an increase of 21.9% in the same quarter last year, today’s report showed.

Merchandise exports recorded a growth of 47.2% during Q2 FY12 as against an increase of 20.1 % during the corresponding quarter of FY11.

As a result, the trade deficit widened to US$43.9bn in the July-September quarter, from the previous quarter’s US$41.8bn, according to the RBI.

Inflows from services were at US$15.5bn in the July to September quarter, compared with US$11.9bn in the year-ago period, and US$15.4bn in the previous quarter.

The capital account showed an inflow of US$244mn on a net basis in the July to September quarter compared with negligible flows in the corresponding quarter of FY11, the RBI said.

The financial account surplus stood at US$17.9bn in Q2 FY12, compared with US$18.3bn a year ago, the RBI data showed.

"The financial account surplus moderated in the second quarter of 2011/12 primarily on account of outflow of portfolio investment," the central bank said.

The RBI said that the balance of payments (BoP) surplus in July-September was US$276mn, compared with a surplus of US$3.3bn in the corresponding period year ago, as per the earlier reporting method.

There was, thus, a negligible accretion to foreign exchange reserves at US$0.3bn during Q2 FY12 (excluding valuation)."

http://www.indiainfoline.com/Market...deficit-widens-to-US-dollar-16.9bn/5323084305

 

[T90TankGuy]

make you feel better?

 

[peep]

make you feel better?

Its time we take a leaf out of pak's notebook. We should start begging now...

 

[53fd]

Its time we take a leaf out of pak's notebook. We should start begging now...

Yet, Pakistan has a better public debt to GDP ratio than India (India's public debt to GDP ratio is 51.9%, Pakistan's is 50.7%). Along with better CAD's as well.

 

[Abingdonboy]

Love it, amateur economists posting such news with little idea what the news actually means. Most developed countries run significant CADs, it has very little reflection on an economies health/strength.

Are you honestly telling me Pakistan's economy is in a better position than India's?

 

[53fd]

Love it, amateur economists posting such news with little idea what the news actually means. Most developed countries run significant CADs, it has very little reflection on an economies health/strength.

There are a lot of things that determine how an economy is faring, & yes, CAD is a big factor in there as well. Which is why the North American & European economies aren't faring so well these days. And yes, Pakistan's economy is faring better than India's in some aspects, & India's is faring better than Pakistan's on others aspects.

 

[janon]

There are a lot of things that determine how an economy is faring. And yes, Pakistan's economy is faring better than India's in some aspects, & India's is faring better than Pakistan's on others aspects.

And overall, which economy do you think is doing better? Which economy is most of the world talking about in positive terms now? Be objective.

 

[foxbat]

Yet, Pakistan has a better public debt to GDP ratio than India (India's public debt to GDP ratio is 51.9%, Pakistan's is 50.7%). Along with better CAD's as well.

Check out Pakistan's external debt coverage ratio and Foreign debt to Reserves ratio first mate..

---------- Post added at 12:14 AM ---------- Previous post was at 12:13 AM ----------

There are a lot of things that determine how an economy is faring, & yes, CAD is a big factor in there as well. Which is why the North American & European economies aren't faring so well these days. And yes, Pakistan's economy is faring better than India's in some aspects, & India's is faring better than Pakistan's on others aspects.

Which aspects is Pakistani economy faring better than India.. And do show some 3-5 year trends instead of 2-3 quarters of flash in the pan numbers

 

[Storm Force]

Abingdon.

no pakistani will reply to your question

 

[53fd]

And overall, which economy do you think is doing better? Which economy is most of the world talking about in positive terms now? Be objective.

There are many facets to an economy. It is dynamic (& responsive to the 'environment'), not static. There are many aspects Pakistan does better than India in economically, & likewise India does many things better than Pakistan.

 

[53fd]

Which aspects is Pakistani economy faring better than India.. And do show some 3-5 year trends instead of 2-3 quarters of flash in the pan numbers

Pakistan's CAD is $-1.85 billion, whereas India's is $-51.78 billion. Pakistan has a better public debt to GDP ratio than India (India's public debt to GDP ratio is 51.9%, Pakistan's is 50.7%). The Indian rupee was the worst performing Asian currency in 2011. Pakistan has also created more jobs (has higher employment growth) than India, & has lower unemployment levels % than India.

http://siteresources.worldbank.org/...097256/7707437-1316565221185/Jobsoverview.pdf

That's pretty much the gist of it, there are a lot of things though.

 

[arcane]

Pakistan's CAD is $-1.85 billion, whereas India's is $-51.78 billion. Pakistan has a better public debt to GDP ratio than India (India's public debt to GDP ratio is 51.9%, Pakistan's is 50.7%). The Indian rupee was the worst performing Asian currency in 2011. Pakistan has also created more jobs (has higher employment growth) than India, & has lower unemployment levels % than India.

http://siteresources.worldbank.org/...097256/7707437-1316565221185/Jobsoverview.pdf

That's pretty much the gist of it, there are a lot of things though.

Mr. Bilal, U have a habit of making a point just for the sake of it. If u had a little knowledge of economy u will know that all ur points has idiotic at best......

1. A country with higher foreign is bound to have higher surplus or CAD.....and higher CAD can also be a good thing.....obviously u don't know that.....

2. Public debt to GDP ratio is almost equal...

3. By worst performing currency if u mean that most depreciated currency, then u need to understand it is essentially a short term phenomenon, moreover currency depreciation doesn't always mean a bad thing, look at currency of Japan during the 90's.....

4. About Jobs, I am not sure where did u get that but even its true, it doesn't matter a lot, cos FDI's in pakistan have fallen by 61% this year..and thats huge, so pakistan will not be able to maintain this growth next year...

 

[janon]

There are a lot of things that determine how an economy is faring, & yes, CAD is a big factor in there as well. Which is why the North American & European economies aren't faring so well these days. And yes, Pakistan's economy is faring better than India's in some aspects, & India's is faring better than Pakistan's on others aspects.

And overall, which economy do you think is doing better? Which economy is most of the world talking about in positive terms now? Be objective.

There are many facets to an economy. It is dynamic (& responsive to the 'environment'), not static. There are many aspects Pakistan does better than India in economically, & likewise India does many things better than Pakistan.

Thats what you said earlier too. My question was more pointed - I used the word overall. You chose to ignore that word and repeat yourself.

 

[Abingdonboy]

Another VS thread? Okay!


Aid as % of GDP India- 0.3% Pakistan- 1.1%

GDP India- $4,164,000,000,000.00 Pakistan- $437,500,000,000.00

GDP (per capita) India-$3,751.99 per capita Pakistan$2,751.54 per capita

GDP > PPP India-$3,362,960,000,000.00 Pakistan- $336,050,000,000.00

Gross National Income India- $477,000,000,000.00 Pakistan- $60,047,300,000.00

Education expenditure % of GNI India- 3.99 % of GNI Pakistan-1.63 % of GNI

Average years of schooling of adults India- 5.1 Pakistan-3.9

Duration of compulsory education India- 8 years Pakistan- 5 years

Duration of education -Primary level India- 6 Pakistan- 5

Education, primary completion rate India- 90 Pakistan- 63

Education spending (% of GDP) India- 4.1% Pakistan- 1.8%

Education spending (% of total government expenditure) India- 12.7% Paksitan- 7.8%

Female enrolment share, Primary level India-43.6% Pakistan- 35.9%

Geographical aptitude results India- 77.883 Paksitan- 69.666

 

[janon]

^^^
The GDP per capita (third statistic) is all that pakistanis need to keep in mind before trolling about poverty in India in every thread, when the thread is about the Indian military aquiring something they never will.