RBI governor said, the current account deficit (CAD) of the country can be easily managed.

New Delhi:

Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the current account deficit (CAD) in the second half of the current financial year 2022-23 will be lower than in the first half (April-September).

The current account deficit in the first half stood at 3.3 per cent of the gross domestic product (GDP).

Announcing the results of the last bi-monthly monetary review (MPC) meeting of the current financial year on Wednesday, he said that CAD will come down in the second half due to the decrease in imports.

The current account deficit has been 3.3 percent of GDP in the first half, which is much higher than 0.2 percent in the same period a year ago.

Shaktikanta Das said, "The current account deficit will come down in the second half and it can be easily managed."

RBI Governor Shaktikanta Das said, "The situation has improved in the third quarter of 2022-23.

Imports have come down due to fall in commodity prices.

Due to this, the trade deficit of goods has come down. ''''''' Das said that in the third quarter of the current financial year, the export of services has increased by 24.9 percent.

Growth in software, business and travel services boosted overall service exports.

Spending on software and IT services is expected to increase globally in 2023.

Apart from this, the money sent by Indians from abroad (remittance) has increased by 26 percent in the first half of the current financial year.

This is double the estimate of the World Bank.

He said that during the first nine months of the current financial year, April-December, the inflow of Foreign Direct Investment (FDI) in the country has been strong at $ 22.3 billion.

In the same period of the previous financial year, this figure was $ 24.8 billion.

The governor said that from July to February 6, the flow of foreign portfolio investors (FPI) has improved to $ 8.5 billion.

Apart from this, the Governor said that the situation has also improved on the front of Foreign Exchange Reserves.

Foreign exchange reserves were $ 524.5 billion on October 21, 2022, which increased to $ 576.8 billion by January 27, 2023.

He said that the country's external debt ratio is below international standards.

The country's external debt / GDP ratio decreased from 19.9 percent in March 2022 to 19.2 percent in September.