India likely for surplus current a/c
India would take some more time before it registers current account surplus on annual basis, though the country showed current account surplus in the last quarter of the previous fiscal, says a PHDCCI study.
By PTI |
NEW DELHI: India would take some more time before it registers current account surplus on annual basis, though the country showed current account surplus in the last quarter of the previous fiscal, says a PHDCCI study.
Simply put, current account surplus means that a country's exports of goods and services are more than its imports.
"Though the current account surplus registered in the fourth quarter of 2006-07 helped in bridging the annual current account deficit to $ 9.6 billion, there is no conclusive proof that trend may set a new path," a statement from the chamber said.
It said with appreciating rupee, the economy still has a high degree of pent-up demand for non-oil imports, particularly for the capital goods, which can widen the trade deficit.
The imports for fourth quarter of last fiscal increased to $ 49.28 billion from $ 42.3 billion in the corresponding period last year. It is also reported that for May 2007 import growth was 26.36 per cent, vaulting the trade account deficit to 45.7 per cent.
"The possibility of hardeni oil prices can create further take up the import bill, making achievement of current account surplus in the coming quarters a distant possibility," the statement added.
Simply put, current account surplus means that a country's exports of goods and services are more than its imports.
"Though the current account surplus registered in the fourth quarter of 2006-07 helped in bridging the annual current account deficit to $ 9.6 billion, there is no conclusive proof that trend may set a new path," a statement from the chamber said.
It said with appreciating rupee, the economy still has a high degree of pent-up demand for non-oil imports, particularly for the capital goods, which can widen the trade deficit.
The imports for fourth quarter of last fiscal increased to $ 49.28 billion from $ 42.3 billion in the corresponding period last year. It is also reported that for May 2007 import growth was 26.36 per cent, vaulting the trade account deficit to 45.7 per cent.
"The possibility of hardeni oil prices can create further take up the import bill, making achievement of current account surplus in the coming quarters a distant possibility," the statement added.
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