Government has taken a slew of initiatives to boost exports and reduce imports to lower trade deficit and thereby Current Account Deficit (CAD), Parliament was informed today. The country’s CAD stood at 5.4 per cent of GDP during April-December in 2012-13 amounting to $72 billion.
In 2011-12, CAD was 4.2 per cent of GDP amounting to $78.2 billion and in 2010-11, it was 2.8 per cent of GDP at $48.1 billion, the Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.
“The government has taken a slew of initiatives to boost exports and reduce imports to lower trade deficit and thereby CAD, and also to encourage capital flows to facilitate the financing of CAD,” Meena said.
The current account deficit (CAD) represents the difference between inflow and outflow of foreign currency.
Measures to boost exports assume significance in view of the widening CAD which touched a historic high of 6.7 per cent of GDP in the quarter ending December 31, 2012.
Also, steps have been taken to reduce imports including enhanced customs duty on gold and platinum from 4 to 6 per cent.