The Reserve Bank expects India’s imports of goods and services to exceed its exports of goods and services to remain within a deficit of 3 percent of GDP.
Current account deficit is used as a measure of trade value of a country. This means that the import value is higher than the export value. In this case, the Central Reserve Bank has released the September bulletin. It said it expects the current account deficit to remain below 3 percent of GDP. Exports have increased, foreign investors are reinvesting in India, and global prices of fuel, food and fertilizers have fallen, and the deficit is manageable, they say.
The report indicated that the price is still rising. Fiscal policy is said to be necessary to contain its effects and keep inflation expectations firmly in place. RBI expects inflation to remain volatile in the short term. It should become moderate from October onwards. In the January-March quarter of 2023, inflation should come within the RBI’s acceptable range of 2-6 percent. RBI has hiked interest rates by 1.4% so far. The next rate review is scheduled for September 30.
Subscribe Dinamalar channel for new news