Finance Minister P Chidambaram on Monday said the government will reduce import of gold, silver, oil and non-essential goods to restrict Current Account Deficit (CAD) to 3.7 per cent of GDP in the current fiscal.
Besides, he told Lok Sabha, the government will also permit public sector financial institutions and oil companies to raise funds abroad and liberalise norms for non-resident deposit schemes to increase capital inflows into the country.
Amid din and uproar in the House over various issues including Telangana, the Minister said, "notifications in respect of tariff rates will be laid before Parliament in the usual course."
He said that with the fresh measures, "CAD will be contained at $70 billion, while the inflows will increase to a level that will be sufficient to finance the CAD. If the CAD is contained at $70 billion, it will amount to 3.7 per cent of the GDP (as against 4.8 per cent in 2012-13)," he said in a statement.
Stressing that like the global economy, Indian economy too is facing challenges, the Minister said, "We believe that we have to do more to contain CAD, to reduce volatility in the currency market and to stabilise the rupee."