Sample writings by members of General public as per remarks posted in The Economic Times
India's current account deficit is expected to widen to 2.8% of GDP this fiscal: Nomura
NEW DELHI: India's current account deficit is expected to widen to 2.8 per cent of the GDP in this financial year, says a Nomura report.With rising oil prices, depreciating rupee and outflow of portfolio investments, there are concerns that CAD might rise in the current fiscal.
"Overall, we expect the current account deficit to widen to 2.8 per cent of GDP in FY19 from 1.9 per cent in FY18," the Japanese financial services major said. It further said that "balance of payment (BOP) funding to remain a challenge in FY19 as the basic BOP (current account + net FDI) is negative and portfolio flows also remain negative".
CAD, which is the difference between the inflow and outflow of foreign exchange, jumped to USD 48.7 billion, or 1.9 per cent of GDP, in 2017-18 fiscal. This was higher than USD 14.4 billion, or 0.6 per cent, CAD in 2016-17 fiscal.
ET Readers comments :-
By Subramaniam Balaraman
India wasted the golden period of 4 years. It should have increased ethanol production and reduced 20% petroleum import . Cane growers would have been paid cash in time and would have voted BJP . Now cut imports from China and buy local gold at 5% higher cost through bank account linked Aadhar and stop Gold import . Hold 10% income tax when the gold purchase crosses Rs2.5 lakhs Which they forgot to do during demonetization .
By Arvind Chitale:-
Have been emphasizing for last 4 years on total review of FTA with China which is hurting our economy( SME sector ) and worsening BOP too. Think that PM and commerce ministry in particular is not serious or has no will to push hard
By Shankar
The challenge is management of the economy..not political mudslingwhat is happening was foreseen long back.. Reversal of QE..interest rate increase in US in a planned manner leading to FDI reversal..no magic solution.if we had the windfall benefits of QE then we must also accept the consequences of reversal of QE..We have sustainable low inflation..decent growth and good Manson..we are addressing the NPAs in a disciplined manner..have to bite the bullet until oil prices stabilize..no soft option ..
By Kumarapuram Sadasivan
The weak Rupee entails huge Losses in the following areas:-1.The US Dollars 104 Billion World Bank Loan at the Current rate of 9.5%,which is the lowest ever.India loses Big Time,via interest and Principal repayment as these loans were taken when the Rupee was comparatively VERY STRONG.Compare the gain in 3 percent yield in the US Dollars 157 Billion US Treasury Holdings to the 9,5% interest,A loss of more than Rs 30000 Crores per annum2.A weak Rupee is bad for an IMPORTING nation like India,losing ..
By Deepak Mehrotra
Modi attacks the previous governments and by way of contrast, presents a report card before leaving us with a passionate and rousing poetic call for a better tomorrow- “ we have to creat a new India “. Modi has such a way with words that while you listen to him, watch him wag his finger and spread out his arms, you are sucked into the bubble he has created and feel good about yourself, good about India. Then television has breaking news . The rupee is falling; foreign investors are fleeing; FDI has fallen; dollar outflow has doubled; trade deficit has been worst since 2013; merchandise exports have been stunted; demonetisation & GST flop- show has pushed small businesses into red; and the western neighbour’s wickedness is at all time high - and bang , the bubble bursts and suddenly “ the loving feeling “ is lost. Who is to believe ? Now Modi is facing the fire-test over his claim of having brought “ Achche Din “ , a desi version of “ never had it so good “ .
By Sunil Tavde
Modi is going to suffer same fate as Vajpayeeji India Shining. Please check on Rs 11000 crore NSEL fraud where 13000 families and PSUs MMTC and PEC looted. Despite promised, Modi has done nothing about it in 4 years. Unless MODI acts against fraudsters, there is no way BJP will win elections. Fraud, especially in Financial Markets, has major detrimental impact on growth,.as people stop investing.
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