Removal of gold import curbs to widen current account deficit: AV Rajwade

In a chat with ET Now, AV Rajwade of AV Rajwade & Co talks about the current account deficit and the rupee. Excerpts:

ET Now: What is your take on the current account deficit and the rupee?

AV Rajwade: As conventionally calculated, I do not see much of a change in the current account deficit that what we have been seeing. But we need to focus also on the fact that one of these days the curb or the duty on gold imports is likely to go. That will further add to the deficit.

If you look at it from the angle of output loss, it is much more than the current account deficit as per conventional account. It is because it takes into consideration the invert remittances which are quite large for us. Now invert remittances are not earned by the domestic economy at all. So our output loss is significantly high.

And, yes, I would like a rupee depreciation. But it is very difficult to put some number on where it would be, say, in 15 days or four months, or by the end of the fiscal year.