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Current account deficit biggest concern: Rajan

The current account deficit is expected to stay at record high for the entire 2012-13

Reuters  |  Pune 

India's record high current account deficit is the country's biggest concern, Finance Ministry's Chief Economic Adviser Raghuram Rajan said on Tuesday.

The current account deficit widened to a record high of 5.4% of GDP in the September quarter as export growth slowed more sharply than imports, with a similar gap expected in the December quarter likely to prolong weakness in the rupee.

The current account deficit is expected to stay at record high for the entire 2012-13.

Rajan was speaking at the convocation ceremony of a banking and finance institute in the western city of Pune.

He also said food inflation persisting at a high level was not easy for the central bank to manage.

India's annual consumer price inflation accelerated to 10.79% in January from the previous month, government data showed.

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First Published: Tue, March 05 2013. 13:04 IST