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India’s CAD to rise 2.7% of GDP in 2014-15: CRISIL

March 12: India’s current account deficit (CAD) is expected to rise to 2.7% of the GDP in 2014-15, mainly on account of increased imports, credit rating agency CRISIL said in a statement.

However, the agency expects CAD to be at 2% of the GDP in the current financial year (2013-14), the lowest since 2007-08, compared to 4.8% last year (2012-13).

“Gold imports will begin to rise once the restrictions on them are relaxed, and imports of oil, consumption and investment goods will pick up as GDP growth improves, resulting in a higher CAD in the next fiscal,” CRISIL said.

“The sharp contraction in imports in this fiscal has been the primary factor that has contained the trade deficit. Going forward, exports are expected to pick up as growth in India’s export markets improves and petroleum exports, which have been muted since November 2013, bounce back,” the statement added.