Rohini Malkani of Citigroup maintains her view that trade deficit will narrow to USD 166.2 billion in FY14 from USD 195.7 billion last year."
"The compression in the trade deficit is likely to bring down current account deficit (CAD) to 2.7 percent of GDP in FY14. This factors in the possibility of lower remittances in H2FY14 arising from the surge in FCNR deposits and rising un-official gold imports," she adds.
She expects CAD to remain moderate at 2.7 percent of GDP in FY15 as well.
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