India should maintain current account deficit within 1-1.5 per cent range: C Rangarajan

NEW DELHI: India should maintain its current account deficit (CAD) within the range of 1-1.5 per cent of the GDP, while export competitiveness must be improved by keeping inflation under control, Former RBI Governor C Rangarajan said today.

"We must be able to maintain the CAD in the range of 1-1.5 per cent of the GDP. Oil prices have helped India keep CAD under control however sluggish exports is a worrying factor," Rangarajan said while delivering Raja Chelliah memorial lecture here.

The former PMEAC chairman also said India should increase its exports competitiveness by keeping inflation under control.

He said fiscal consolidation should be pursued vigorously and there should be an appropriate price policy in place.

"An appropriate exchange rate policy must be in place," he added.