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Interim Budget 2014: Current account deficit to be USD 45 bn in FY14, says Chidambaram

While presenting the Interim Budget in Parliament, the finance minister also said: "I am happy to inform the House that we expect to add about $15 billion to the foreign exchange reserves by the end of the financial year."

twitter-logo PTI   New Delhi     Last Updated: February 17, 2014  | 12:22 IST
Current account deficit to be $45 bn in FY14: Govt
(Photo for representational purpose only. Source: AP)

India's current account deficit (CAD) will be contained at $45 billion this financial year, well below the record high level of 2012-13, Finance Minister P Chidambaram said on Monday.

"CAD that threatened to exceed last year's $88 billion will be contained at $45 billion," he said in the interim budget presented in Parliament.

The finance minister also said: "I am happy to inform the House that we expect to add about $15 billion to the foreign exchange reserves by the end of the financial year."

INTERIM BUDGET 2014-15:Key highlights

In the first half (April-September) of 2013-14, CAD narrowed to $26.9 billion (3.1 per cent of GDP) from $37.9 billion (4.5 per cent of GDP) in the first half of 2012-13.

Both the government and the Reserve Bank of India (RBI) had taken steps to bring down gold imports, one of the major causes for the widening of the CAD in 2012-13.

The government had increased customs duty on gold thrice in 2013 to 10 per cent and the RBI had imposed a series of curbs on inward shipments of the yellow metal.

FULL COVERAGE:The Great Indian Budget

Chidambaram also said India's exports are likely to touch $326 billion in 2013-14. Exports were about $304.5 billion in 2012-13.

The aim, he said, "must be robust growth in exports and imports, both."

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