India's current account deficit down to 1.3% of GDP: Jaitley

[SR-91]

LIMA: Finance minister Arun Jaitley on Saturday said the country's current account deficit has come down substantially to around 1.3 per cent of GDP in 2014-15, as against around 4.8 per cent two years earlier.

Besides, he said while the country was suffering from double-digit inflation then, this has dipped to a low of 3.7 per cent, an official statement said.

In his lead intervention in the plenary session of the International Monetary Fund's (IMF) International Monetary and Finance Committee on Friday, he said India is utilizing the regime of lower oil and commodity prices to increase investments in infrastructure and irrigation as well as to undertake comprehensive subsidy rationalization and successfully roll out the world's largest financial inclusion initiative under which around 185 million bank accounts have been opened.
Due to the large number of initiatives underway encompassing multiple areas of intervention and reforms, Jaitley expressed optimism that India would continue to record higher level of growth.


He emphasized that the IMF would be constrained in meeting its obligations if the IMF Quota and governance reforms are not implemented expressing concern at the unprecedented delay in implementation of the 14th General Review of Quotas.

Jaitley also said that the global economic outlook outlined by the IMF does not look particularly encouraging as it has bearing on India's exports.

Consisting of 24 members who are finance ministers, central bank governors or others of comparable rank, the IMFC is a key body providing strategic direction to the work and policies of the IMF.

India's current account deficit down to 1.3% of GDP: Jaitley - The Times of India

India is RISING.

 

[Tridibans]

LIMA: Finance minister Arun Jaitley on Saturday said the country's current account deficit has come down substantially to around 1.3 per cent of GDP in 2014-15, as against around 4.8 per cent two years earlier.

Besides, he said while the country was suffering from double-digit inflation then, this has dipped to a low of 3.7 per cent, an official statement said.

In his lead intervention in the plenary session of the International Monetary Fund's (IMF) International Monetary and Finance Committee on Friday, he said India is utilizing the regime of lower oil and commodity prices to increase investments in infrastructure and irrigation as well as to undertake comprehensive subsidy rationalization and successfully roll out the world's largest financial inclusion initiative under which around 185 million bank accounts have been opened.
Due to the large number of initiatives underway encompassing multiple areas of intervention and reforms, Jaitley expressed optimism that India would continue to record higher level of growth.


He emphasized that the IMF would be constrained in meeting its obligations if the IMF Quota and governance reforms are not implemented expressing concern at the unprecedented delay in implementation of the 14th General Review of Quotas.

Jaitley also said that the global economic outlook outlined by the IMF does not look particularly encouraging as it has bearing on India's exports.

Consisting of 24 members who are finance ministers, central bank governors or others of comparable rank, the IMFC is a key body providing strategic direction to the work and policies of the IMF.

India's current account deficit down to 1.3% of GDP: Jaitley - The Times of India

India is RISING.

Just the other day our resident economic experts @AndrewJin @cnleio @Shotgunner51 @TaiShang expertly explained India will collapse due to rising CAD and inflation.... not to mention decreasing growth rate

What I find the most funny part is that whatever parameter they bring in to downplay India, suddenly, a few months down the line we are way way improving in that.

@Shotgunner51 was concerned about pour poverty so much that UN revised their figures

India's porverty reduced from 269 million to 172 million : World Bank

@AndrewJin had explained in detail how India's export-import gap means our Current Account Deficit will bring a storm and collapse our economy..... So what that actually means is ...

India's current account deficit down to 1.3% of GDP: Jaitley - The Times of India

@Mr.Nair @Mike_Brando @Abotani

 

[Mike_Brando]

Just the other day our resident economic experts @AndrewJin @cnleio @Shotgunner51 @TaiShang expertly explained India will collapse due to rising CAD and inflation.... not to mention decreasing growth rate

What I find the most funny part is that whatever parameter they bring in to downplay India, suddenly, a few months down the line we are way way improving in that.

@Shotgunner51 was concerned about pour poverty so much that UN revised their figures

India's porverty reduced from 269 million to 172 million : World Bank

@AndrewJin had explained in detail how India's export-import gap means our Current Account Deficit will bring a storm and collapse our economy..... So what that actually means is ...

India's current account deficit down to 1.3% of GDP: Jaitley - The Times of India

@Mr.Nair @Mike_Brando @Abotani

Lol,those Chinese are burning with jealousy because they know that they will never become the sole super power of Asia as long as they have India as their competition,hence all these ranting about the poverty and failure of India.
On topic,the NDA Govt. has been doing wonders in the field of economics in the last year and a half.Just wait for the GST and LAB to be passed later this year in the Parliament and i am quite sure that our growth with exceed 8% in the coming years!!

 

[Donald Trump]

Just wait for the GST and LAB to be passed later this year in the Parliament and i am quite sure that our growth with exceed 8% in the coming years!!

Forget it! Rahul baba, his Italian mom and their Congress shouting brigade chamchas will never let that happen. This would only be passed once the Rajya Sabha gets a NDA majority.

 

[Mike_Brando]

Forget it! Rahul baba, his Italian mom and their Congress shouting brigade chamchas will never let that happen. This would only be passed once the Rajya Sabha gets a NDA majority.

Nah,we'll pass the LAB by calling a joint session where NDA has a simple majority in term of numbers.While in case of GST,it will be passed in the upcoming Winter session in the Parliament,that's for sure.A lot of regional parties have been taken into confidence by the NDA in this regard,so it won't be difficult to pass that bill in the R.S.!!

 

[Donald Trump]

Nah,we'll pass the LAB by calling a joint session where NDA has a simple majority in term of numbers.While in case of GST,it will be passed in the upcoming Winter session in the Parliament,that's for sure.A lot of regional parties have been taken into confidence by the NDA in this regard,so it won't be difficult to pass that bill in the R.S.!!

Thumhare muh mein ghee shakkar!

 

[anant_s]

Wonderful statistic. The economic discipline is now paying off.

Now waiting for GST bill to get passed.

Just wait for the GST and LAB to be passed later this year in the Parliament and i am quite sure that our growth with exceed 8% in the coming years

dada, even by conservative estimates, GST alone has a potential to add 1.7-1.9 percentage points to GDP growth. But more than that, why GST is important, is that it brings a fundamental reform to a very complex taxation structure in country. with so many layers of taxation and rules associated with them, it becomes easier for some to either evade tax or troublesome to most in managing them.
A simpler pragmatic tax structure as envisaged in GST regime would make it easier for taxpayers to manage their finances but also help government in tracking its taxpayer base, making the whole rule a very robust one.
Hope Congress sees merit in the whole thing and extends support for bill in Rajya Sabha.

 

[SR-91]

Lol,those Chinese are burning with jealousy because they know that they will never become the sole super power of Asia as long as they have India as their competition,hence all these ranting about the poverty and failure of India.
On topic,the NDA Govt. has been doing wonders in the field of economics in the last year and a half.Just wait for the GST and LAB to be passed later this year in the Parliament and i am quite sure that our growth with exceed 8% in the coming years!!

PM offers Rs 65-lakh-cr investment avenue to UAE | Business Standard News

Translates to 1 TRILLION Dollars.

Be prepared for massive UAE investment. IMO, over the next 5 years, UAE will invest over 100 Billion Dollars into Indian economy.

Wonderful statistic. The economic discipline is now paying off.

Now waiting for GST bill to get passed.


dada, even by conservative estimates, GST alone has a potential to add 1.7-1.9 percentage points to GDP growth. But more than that, why GST is important, is that it brings a fundamental reform to a very complex taxation structure in country. with so many layers of taxation and rules associated with them, it becomes easier for some to either evade tax or troublesome to most in managing them.
A simpler pragmatic tax structure as envisaged in GST regime would make it easier for taxpayers to manage their finances but also help government in tracking its taxpayer base, making the whole rule a very robust one.
Hope Congress sees merit in the whole thing and extends support for bill in Rajya Sabha.

Thats big, almost 2%!!!!!
By the way, Railway Minister also said, in a couple of years Indian Railways can easily add 2% to GDP.

Railway Minister Suresh Prabhu says India’s GDP Can Double in 3 Years | News24Hours

Gadkari too said, Major ports and highways will add 2% to GDP.

Road, Shipping Sector to Boost GDP Growth in Two Years: Gadkari -The New Indian Express

http://www.dnaindia.com/money/repor...e-2-of-gdp-transport-minister-gadkari-2065832

Congress support GST???? They rather die than unite FOR India's future. Unfortunately.

Just the other day our resident economic experts @AndrewJin @cnleio @Shotgunner51 @TaiShang expertly explained India will collapse due to rising CAD and inflation.... not to mention decreasing growth rate

They are just doing their job as PAID CCPs.

 

[gslv]

Some nationals are conspicuously missing here.

 

[HariPrasad]

Awesome . Magician Modi has a guts to turn anything which he touches into Gold.

 

[Shotgunner51]

@Tridibans

Thanks for tagging! The title of this news is indeed very motivating, no wonder some much cheers among members here. Congrats!

We all know what current account deficit comprised of right? If not check the link below. On the motivating news, what's the breakdown of the current account deficit?
Current Account Deficit Definition | Investopedia

And let's see how India is doing on balance of trade?
India Balance of Trade | 1957-2015 | Data | Chart | Calendar | Forecast
The trade deficit increased to $12.48 billion in August compared to a $10.8 billion deficit a year earlier. It is the highest trade gap for an August month since 2012 as exports shrank by 20.66% (9th straight month) while imports dropped by 9.95%.

While price of oil, a major imports, is hitting new lows, how come trade deficit deteriorates? Can india gets out of trade deficit?
Understanding Continuing Decline In Indian Exports – Analysis | Eurasia Review

In relation to current account, there is debt servicing, how much is total external debt level to service?
India Total External Debt | 1999-2015 | Data | Chart | Calendar | Forecast
Increased to $482.900 billion in the second quarter of 2015 from $475.813 billion in the first quarter of 2015.

​

 

[kaykay]

Great. 1.3% of GDP is lowest in many years If I am not wrong.

 

[anant_s]

Thats big, almost 2%!!!!!
By the way, Railway Minister also said, in a couple of years Indian Railways can easily add 2% to GDP.

Railway Minister Suresh Prabhu says India’s GDP Can Double in 3 Years | News24Hours

Gadkari too said, Major ports and highways will add 2% to GDP.

Road, Shipping Sector to Boost GDP Growth in Two Years: Gadkari -The New Indian Express

Major ports and highways to contribute 2% of GDP: Transport Minister Gadkari | Latest News & Updates at Daily News & Analysis

Congress support GST???? They rather die than unite FOR India's future.

focus on infrastructure is always a smart way to kick start or accelerate growth.
one more thing i want to add is government's focus on banking sector reforms. it is trying to bring in structural improvement by means of bad loan reduction and re capitalization, something that will allow better capital flow and start the capital spending cycle again.
only concerning thing i can see right now is opposition of congress to each and every bill just for the sake of opposing.
i don't see its support to land bill but for GST bill it must really support. hopefully GST regime will get implemented by 2016 March.

 

[Providence]

@Shotgunner51

Any reason your graph starts with a base value of 250000 ?

From 2010 to 2014, the Debt hasn't even doubled but your graph makes it look like it has more than quadrupled. Dishonesty should be second name of chinese people !

 

[SR-91]

focus on infrastructure is always a smart way to kick start or accelerate growth.
one more thing i want to add is government's focus on banking sector reforms. it is trying to bring in structural improvement by means of bad loan reduction and re capitalization, something that will allow better capital flow and start the capital spending cycle again.
only concerning thing i can see right now is opposition of congress to each and every bill just for the sake of opposing.
i don't see its support to land bill but for GST bill it must really support. hopefully GST regime will get implemented by 2016 March.

India's central bank chief Rajan is the best in the world.

@Shotgunner51

Any reason your graph starts with a base value of 250000 ?

From 2010 to 2014, the Debt hasn't even doubled but your graph makes it look like it has more than quadrupled. Dishonesty should be second name of chinese people !

It's quoted in millions.
Nothing wrong with the chart, external debt was a little over 2.5 billion, or 250000 million, in 2010.
It is close to double in 2015