Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Thursday, October 30, 2014  

India current account deficit rises to 5.4% in Q2 on weak exports
MUMBAI India’s current account deficit widened to a record high of 5.4 per cent of GDP in the September quarter as export growth slowed more sharply than imports, with a similar gap expected in the December quarter likely to prolong weakness in the rupee.

The worse-than-expected deficit also adds pressure on the government as it tries to push through long-delayed reforms to stave off a sovereign rating downgrade due to the country’s high deficit on both the current and fiscal accounts. A sharp rise in gold imports, a hefty oil bill and falling exports due to the global slowdown have kept India’s current account deficit at persistently high levels.

“Even with curbs on gold import, if you have the current account deficit going up, it will be a hit on the country’s sentiment as a whole,” said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.

India ran a balance of payments deficit of $158 million for the July-September quarter, against a surplus of $521 million in the previous quarter and compared with a surplus of $276 million a year earlier, the RBI data showed.

The current account deficit was $22.3 billion in the three months through September, or 5.4 per cent of GDP, compared with $16.6 billion in the June quarter and $18.9 billion in the September quarter of 2011.

Economists expect the current account gap to remain above 5 per cent in the December quarter. “Current account deficit is going to be as strained in the third quarter (October-December) as it was in the second quarter because of flattish GDP growth,” said Shubhada Rao, chief economist at Yes Bank.

India’s April-November fiscal deficit rose to Rs4.13 trillion, or 80.4 per cent of the budgeted target for the fiscal year ending in March, casting doubt on the government’s pledge to mend its finances following a higher-than-budgeted expenditure bill.

The rupee was the third worst performer in Asia in 2012, even though net inflows into Indian stocks were the highest in the region. The rupee closed 2012 at 55. “In the absence of any positive trigger the rupee could move a tad up to 53-54 in Jan-March due to seasonal dollar inflows,” Yes Bank’s Rao said.

India’s financial account, which includes foreign direct investment, portfolio investment and overseas borrowing by Indian companies, stood at a surplus of $24.2 billion, higher than the $15.7 billion in the June quarter, and compared with $19 billion in the year-earlier period.

Gross domestic product growth for the current fiscal year is expected to be 5.7-5.9 per cent, the slowest since 2002/03, and Prime Minister Manmohan Singh said last week.

Reuters
NEWS UPDATES
Oman
Sunaidy, Rajnath sign judicial, legal cooperation agreement
Fair trial forum starts today
Pinda meets investors, promotes Tanzania
SQMC cadets get training with live ammunition
Six housing deals inked
Selection for HM Award set to start
Other Top Stories
White House computer system breached
US government buildings put on high terrorism alert
Iraq army closes in on militia-held Baiji refinery
Rocket to ISS explodes on liftoff
Obama calls on Americans to help check Ebola
India
List of 627 black money suspects submitted to court
Karat denies divide in CPM leadership
Maran brothers, six others indicted in Aircel-Maxis case
Gujarat shifts thousands as Nilofar nears
Delhi all set to test fire long-range missile
NIA set to probe Kerala link in Burdwan bomb blast case
300 black money holders abroad to be prosecuted
Andhra techie held over bid to join Iraq insurgency
Declare TMC ‘terrorist party’
Government bats for self-attestation of documents
Pakistan
Pak coastal areas on alert as Cyclone Nilofar approaches
Pak army ‘can respond’ to any border aggression
Middle East
Violence pushes Libya to point of no return: UN
24,000 Gaza workers get pay in boost to Palestinian unity
Hezbollah dug tunnels to Israel, says army general
House rejects Rowhani nominee for minister again
Houthi rebels seize control of Yemeni city, nine killed
Asia
Bangla politician gets death for 1971 war crimes
HK will be punished if stir continues, says China official
Australia yet to confirm death of Baghdadi militia recruit
Xinjiang schools to curb religious practice
Business
No need to panic, feels Opec
India retains top slot in most confident consumer market: Nielsen
Indian banks’ soured loans rise to 3-year high
Japan factory output records biggest jump in eight months
Meethaq to tap sukuk market in Q1 next year
World Bank urges China to cut GDP growth goal
India fares better in protecting minority investors: World Bank
Adani ropes in consultant for $6.2b Australia coal project
ONGC pips RIL to become India’s top energy firm
Facebook shares tumble despite profit rise in Q3
SEC probes private equity firms
Europe
51 countries sign OECD pact to tackle tax cheats
11,000 UK asylum seekers wait for years to find whether they can stay
Ukraine, Russia in new talks to end gas row before winter
Erdogan to unveil new presidential palace
Cameron rejects Scottish proposal on exit from EU
Sports
Mario finally breaks goal drought
Enrique unaware of Messi’s painkiller
Relief for Dortmund as they cruise through
Proud father Djokovic progresses
Spurs scrape one-point win over Mavs
Al Hilal in line for bumper payday
Thai media giants eye takeover of Bolton
Quality of ISL depends on nationals
Murray happy to be part of new league
Randle fractures leg on debut
Oman Desert Marathon next week
Muneer, Ayaan cruise into OAB Open quarterfinals
Oman International Rally … get, set, go

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution