Stating that there has been improvement in the trade account, C Rangarajan, Chairman of the Economic Advisory Council to Prime Minister, said on Monday that the country's high current account deficit is likely to go down well below $70 billion.
Pointing out that India's exports showed a double digit growth rate in August and September, he said at an event in Chennai that India's trade deficit in the first half of this year was $80 billion as compared to $92 billion in the previous year.
If the present trend in exports and imports continue, the overall current account deficit will reduce even lower than $70 billion, he said.
Noting that the Indian rupee over the last few weeks had remained stable at around 61-62 against the US dollar, he said the currency was well corrected for inflation differential.
Referring to the USA's indication of tapering on May 22 and the resultant fall in capital flows, he said this affected capital inflows not only to India but to all the emerging economies including Brazil as investments were moved to the USA.
However, now, there has been a change and investments flows have turned positive, he said.
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