In a very recent declaration Mr. Rangarajan the chairman of the Prime Minister’s Economic Advisory Council (PMEAC) revealed that the total capital inflow in the country of India were not sufficient enough in order to cover up the current account deficit.
The Japanese brokerage firm Nomura on the last week said that expectations are there that the current account deficit of India is going to touch the mark of 4.2 per cent of gross domestic product (GDP) for the present fiscal year, besides the additional upside risk to the external environment related to the rising of the economy of India. The Indian economist from Nomura Sonal Varma and Aman Mohunta clearly mentioned as well as blamed the latest spike noticed in the imports due to the substitution related to the import.
A sudden enhancement was noticed in the trade deficit of $21 billion in October which is an all time high. The last recorded highest was $18.1 billion in September, 2012. As per Mr. Rangarajan the government is trying hard to meet the target with some remedial measures for it.