 "What are the reasons for the five-year high trade deficit in July")
India’s current account deficit (CAD) could overshoot the Centre’s own estimates by 10-20 basis points as a percentage of gross domestic product (GDP), due to high crude oil prices and the rupee reaching its historical low against the dollar, a top government official said on Tuesday.
Additionally, the government is not ruling out re-introducing a swap window for FCNR (B), similar to the one used during 2013 to deal with the fall in rupee, the official said. FCNR refers to Foreign Currency Non-Repatriable account deposits.
“There will be some stress on the CAD. We have built adequate reserve over a period of
