YS Sujana Chowdary Updates from Rajya Sabha. Questions Debates and Current News
Tuesday, August 13, 2013
Steps Taken To Contain CAD
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA
QUESTION NO 839
ANSWERED ON 13.08.2013
SHRI Y.S. CHOWDARY Will the Minister of FINANCE be pleased to satate :- (a) whether it is a fact that Current Account Deficit (CAD) has been on rise during the last three years;
(b) if so, the details thereof;
(c) whether it is also a fact that the Current Account Deficit (CAD) will remain high for two more years; and
(d) the steps taken/being taken by Government to contain it as quickly as possible?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b) Current account deficit (CAD) during the last three years is given below. ------------------------------------------------ Year CAD (US$ billion) CAD as per cent of GDP 2010-11 48.1 2.8 2011-12 78.2 4.2 2012-13 88.2 4.8 ------------------------------------------------
(c) & (d) The Government has taken a slew of initiatives to boost exports and to contain imports to lower trade deficit and thereby CAD. The Government announced various export enhancing measures in June 2012, December 2012 and April 2013. In July 2013, Government has increased the rate of interest subvention from 2 per cent to 3 per cent to benefit the exporters of small and medium enterprises and also for the most of the labour intensive sectors. In order to lower the import of gold, the Government had raised the import duty from 2 per cent to 4 per cent on gold in the Budget 2012-13, which was enhanced to 6 per cent in January 2013 and further to 8 per cent in June 2013. As a step towards restricting the gold imports, Government has linked the gold imports with the gold exports, whereby 20 per cent of the imported gold has to be channelized for gold exporters. Inflation Indexed Bonds has been introduced on June 04, 2013 to wean away investors from the gold to other savings instruments and help in moderating gold demand. Apart from these measures, the Government has revised diesel prices and capped subsidized LPG cylinders to consumers to contain the fiscal burden of subsidies in September 2012. In January 2013, oil marketing companies were permitted to raise diesel prices in small measures periodically. These measures are expected to moderate the demand for oil imports. Given the steps taken by the Government to enhance exports and to lower imports, it is expected that CAD will moderate in the current fiscal. Twitter Link To This Post Facebook Link To This Post Google + Link To This Post
SHRI Y.S. CHOWDARY Will the Minister of FINANCE be pleased to satate :- (a) whether it is a fact that Current Account Deficit (CAD) has been on rise during the last three years;
(b) if so, the details thereof;
(c) whether it is also a fact that the Current Account Deficit (CAD) will remain high for two more years; and
(d) the steps taken/being taken by Government to contain it as quickly as possible?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b) Current account deficit (CAD) during the last three years is given below. ------------------------------------------------ Year CAD (US$ billion) CAD as per cent of GDP 2010-11 48.1 2.8 2011-12 78.2 4.2 2012-13 88.2 4.8 ------------------------------------------------
(c) & (d) The Government has taken a slew of initiatives to boost exports and to contain imports to lower trade deficit and thereby CAD. The Government announced various export enhancing measures in June 2012, December 2012 and April 2013. In July 2013, Government has increased the rate of interest subvention from 2 per cent to 3 per cent to benefit the exporters of small and medium enterprises and also for the most of the labour intensive sectors. In order to lower the import of gold, the Government had raised the import duty from 2 per cent to 4 per cent on gold in the Budget 2012-13, which was enhanced to 6 per cent in January 2013 and further to 8 per cent in June 2013. As a step towards restricting the gold imports, Government has linked the gold imports with the gold exports, whereby 20 per cent of the imported gold has to be channelized for gold exporters. Inflation Indexed Bonds has been introduced on June 04, 2013 to wean away investors from the gold to other savings instruments and help in moderating gold demand. Apart from these measures, the Government has revised diesel prices and capped subsidized LPG cylinders to consumers to contain the fiscal burden of subsidies in September 2012. In January 2013, oil marketing companies were permitted to raise diesel prices in small measures periodically. These measures are expected to moderate the demand for oil imports. Given the steps taken by the Government to enhance exports and to lower imports, it is expected that CAD will moderate in the current fiscal. Twitter Link To This Post Facebook Link To This Post Google + Link To This Post
No comments:
Post a Comment