NEW DELHI: The country’s Current Account Deficit (CAD) will be less than one per cent of Gross Domestic Product (GDP) in the next fiscal, said Arun Jaitley, Minister for Finance at the Lok Sabha on Tuesday.
Aided by falling oil prices, CAD narrowed to 1.6 per cent during October-December, 2014 from 2 per cent the previous quarter. It is widely anticipated that India should move into surplus in 2015 for the first time in eight years.
Reiterating the possibility of reaching 8 per cent GDP, Jaitley said, the country could overtake China, a belief equally endorsed by IMF. He urged the Opposition not to obstruct passing of key reform bills.
“This is a historic opportunity where India has real chance of growing. The world also sees India as a bright spot. We must use this opportunity...I appeal with folded hands...Let politics of obstructionism not go to next stage,” he said.
According to Jailtey, the global economy suits India as Brazil faces challenge, Europe has slowed down and China’s 7 per cent is the new normal.
Justifying the government’s quest for opening more sectors for foreign investment, saying more funds were required to create jobs, develop infrastructure and undertake social welfare programmes.
He also made a case for reduction in interest rates by RBI, warning that the growth will otherwise suffer.