'Current Account Deficit will be contained at 60 billion dollars': Chidambaram

New Delhi, Nov.1 (ANI): Finance Minister P Chidambaram on Thursday said that the Current Account Deficit (CAD) is under control, and will be contained at 60 billion dollars.

"Current Account Deficit shall be contained at 60 billion dollars. It is well under control, and I am confident we will be able to adhere to red line for fiscal deficit. Earlier current account deficit target was 70 billion dollars," he told media here today.

"There has been a sharp pick up in exports in last three months. Trade balance will be well contained, and it will reflect on current account deficit," he added.

He further said that inflation and reviving investments are key challenges for the government.

"We are confident that the steps taken by the Reserve Bank of India (RBI) will bring moderation in inflation," he said.

"The rupee has by and large stabilised, though in my personal opinion it is still trading above its appropriate level. The stability in currency markets will give comfort to take more measures,' he added.

Chidambaram also cautioned the investors against exuberance over market rally.

"Investor confidence in India remains intact. I would caution investors against excessive exuberance over market rally," he said.

He also said that the Foreign Direct Investment (FDI) inflows have been encouraging.

"Looking forward to more FDI inflows in pharmaceutical sector, single brand retail, multi brand retail and telecom sectors," he added.

The BSE Sensex hit an all-time high today breaking its earlier record of 21,206, which was set in January 2008.

The Sensex set a new all-time high record of 21,293.88, up nearly 130 points. The Nifty gained 8 points to close at 6,307. (ANI)

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India will fully finance Current Account Deficit: Chidambaram

Bangalore, Oct.5 (ANI):Finance Minister P.Chidambaram said Saturday that the country would finance its Current Account Deficit fully in fiscal 2013-14 without drawing down on its reserves.

Chidambaram said he is confident of economic growth and India would be able to contain the Current Account Deficit.

"The confidence comes from my knowledge of the numbers. The confidence comes from the fact that gold imports have sharply compressed in the months of July, August and September. For example in April, May, June we imported 335 tonnes of gold. In July, August and September, I think the number has come down to about 65 or 70 tonnes. My confidence comes from the fact that exports have picked up briskly and smartly," he said.

The Current Account Deficit grew less than expected in the June quarter and is tipped to ease in coming months as a pick-up in exports and lower gold imports improve the trade balance, offering relief to the battered rupee.

On Tuesday, Economic Affairs Secretary Arvind Mayaram said the country would contain the fiscal deficit at 4.8 percent of GDP and added that the government would not have to go beyond the finance ministry's planned market borrowing for the year, and would be able to meet its budgeted revenue target.

The Current Account Deficit (CAD) for the three months through June was USD 21.8 billion, or 4.9 percent of gross domestic product, driven by sluggish exports and high gold imports in April and May before the government hiked tariffs on the metal to a record 10 percent.

Meanwhile, slowing economic growth has dampened tax revenues, making it tougher for the government to hit its fiscal deficit target of 4.8 percent of GDP for the financial year that ends in March.

Economists are now split over whether new Reserve Bank of India (RBI) chief Raghuram Rajan will hike rates again at the central bank's next policy review on October 29.

Many did not anticipate Rajan's focus on curbing inflationary pressures despite growth languishing at a decade-low.

Furthermore, Chidambaram also spoke in detail about the Forward Markets Commission (FMC) issuing show cause notice to FTIL (Financial Technologies (India) Limited).

"FTIL (Financial Technologies (India) Limited) which is a promoter is also under the watch both by the Ministry of Company Affairs and by the two regulators. While NECL (National Spot Exchange Limited) as I have said it is a company. It is not a regulated entity. They are in court. I wish the depositors or the lenders or investors the best. They should exercise and establish their rights under court of law. And those who have committed any errors, I don't know, they will be answerable to those who have put their money in NECL," added Chidambaram.

FMC has alleged that even though borrowers had defaulted on earlier loans, they were allowed to raise money on the NSEL platform.

The FMC on Thursday barred the National Spot Exchange (NSEL) and group firms from auctions of commodities held by the stock exchange after a complaint that firms related to the former Managing Director took part in the bidding process. (ANI)

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