India's trade deficit widened sharply to $21.19 billion in February compared to $17.94 billion the previous month, preliminary data showed.
India's recent economic failures are the result of the breakdown in accountability at the Centre, says Ruchir Sharma. But mass-based leaders in states are faring much better
The Reserve Bank today welcomed the General Budget, saying it has laid the foundation for lowering fiscal and current account deficits, apart from supporting both domestic and foreign investments.
The rupee fell on Thursday after a government projection estimated economic growth in the fiscal year will be worse than expected, raising concerns about how it would fund its fiscal and current account deficits.
Assuring India's commitment to pursue economic reforms, Finance Minister P Chidambaram has said government will cut fiscal and current account deficits to help economy return to the 8 per cent growth path.
The RBI said a sustained commitment to contain fiscal and current account deficits was needed to create room for monetary easing, a day before it is widely expected to cut interest rates for the first time since April.
The Reserve Bank of India is expected to reduce its policy interest rate by 25 basis points in a policy review on January 29, making its first cut in nine months on the back of slowing inflation and weak economic activity, economists polled by Reuters said.
AV Rajwade, Forex & Treasury Management Consultant, in an interview with CNBC-TV18’s Latha Venkatesh spoke about the positive impact of the rupee depreciating, considering, the face that the trade deficit pressures and the FII flows are beginning to peter out.