CAD might not appear as immediate concern: Indranil Pan, Chief Economist, Kotak Mahindra Bank

In a chat with ET Now, Indranil Pan, Chief Economist, Kotak Mahindra Bank shares his views on economy.

ET Now: Is CAD a concern to export growth slowing down?

Indranil Pan: Well, from the CAD picture it might not sort of appear as a immediate concern but from a larger picture that is definitely a concern. Because, on one side the global growth is falling, the domestic demand which means the external demand is slow, the domestic demand is not also strong enough which necessarily means that the impetus to investments by the corporate sector would be lagging to that extent in the sense that unless the excess capacities that we have at this point in time are sort of not covered up you would possibly not see any further investments from the corporate side immediately.

So, corporate investments to pick up even with an expectation of lower interest rates in the economy might not be a reality if external growth in terms of the export performance of India is not relatively on the higher side.