Current account surplus can't be celebrated: Former FM Chidambaram

A day after Chief Economic Advisor (CEA) Krishnamurthy Subramanian said the country is likely to have a current account surplus this year, former finance minister P Chidambaram on Tuesday said this means India, which needs capital, is investing its capital abroad.

“The CEA has confirmed my suspicion that India will end 2020-21 with a current account surplus. But I am puzzled by the tone of his remarks. Is the CEA celebrating a current account surplus?” he tweeted. Given that India is a developing country in need of capital, a current account surplus cannot be celebrated.

“Our policies should ensure that both exports and imports grow smartly leaving a manageable current account deficit,” he said.