India's external economy performed badly in the June quarter..Govt's efforts to curb gold imports paid off and the core sector grew at its strongest pace in seven months, which gave a good news for the battling economy.Now, the Concerns on current account deficit (CAD) are out of the way, but fiscal deficit needs utmost attention of the government, data showed on Monday.
For the quarter ended June, CAD came in at $21.8 billion, or 4.9% of the gross domestic product (GDP), a tad less than the 5% or so the market was expecting. Last financial year, CAD was at 4% of GDP in the first quarter and 3.6% in the fourth quarter.The major driver was the huge trade deficit, which increased from $43.8 billion to $50.5 billion over a year.Imports grew 4.7% to $124.4 billion in the first quarter as against a decline of 3.9% to $118.9 billion in the same period last fiscal.
The finance ministry is expecting to get much better numbers in the upcoming financial year..the ministry estimates CAD at 2.6% of GDP, or at $48.2 billion.
What we can just hope is that Indian economy will soon retain its stable position and this festive season will really bring some cheer for the Indians.
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