September 15, 2018

Govt. To Increase Exports, Decrease Non-Essential Imports To Contain Widening Cad


Finance Minister ARUN JAITLEY said that in the midst of a broadening current account deficit (CAD), falling rupee and escalating crude oil prices, the government has decided to increase exports and reduce non-essential imports.

In a meeting presided over by PRIME MINISTER NARENDRA MODI, the government also decided to remove limitations on masala bonds and external commercial borrowings to check the CAD, which plunged for the first time in six quarters in April-June. Masala bonds are defined as rupee-dominated instruments through which Indian entities can raise funds by accessing overseas capital markets.

MR JAITLEY said, “To address the issue of expanding CAD, the government will take necessary steps to cut down non-essential imports and increase exports. The commodities of which imports will be cut down will be decided after consultations with the concerned ministries and will be WTO-compliant.”

MR JAITLEY said that the decision was intended to check the CAD and increase inflows of FOREX. The RBI Governor and officials of the Finance Ministry briefed the PM on the Indian economy.In the first quarter, CAD increased to $15.8 billion, compared to $15.0 billion in the corresponding period a year ago.

Related Post

latest News

  • Eligible Foreign Entities Can Participate In Commodity Derivatives Market: SEBI

    On October 09, addressing the Managing Directors / Chief Executive Officers of all Recognized Stock Exchanges and recognized Clearing Corporations wit...

    Read More
  • Suspension Of School Students Accused Of PDA upheld: Kerala HC

    The Kerala High Court has upheld the order of St Thomas Central School in Thiruvananthapuram to expel a Class 12 boy for hugging in public during the ...

    Read More
  • SS Rana's Bindra Rana completes 50th Anniversary at the Bar Council of Delhi

    With immense pleasure, SS Rana & Co. announced that its Senior Partner Bindra Rana will complete her 50th Anniversary at the Bar Council of Delhi on N...

    Read More