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Steps taken to cut current account deficit, stabilise Re: Jaitley

IANS  |  New Delhi 

To stop further depreciation of rupee and widening of deficit (CAD), the government on Friday took five measures and a broad policy decision to curb non-essential imports and increase exports.

Arun Jaitley, after holding a detailed discussion with Narendra Modi, said the government is committed to maintain its fiscal deficit target even as it monitors the impact of external factors on the Indian economy.

"One broad policy decision was to address the issue of expanding deficit. The government will take necessary steps to cut down non-essential imports and increase exports," Jaitley told reporters after the high-level meeting.

The meeting was attended by (RBI) and senior officers from the (PMO), and the RBI.

"The non-essential import items would be decided in consultation with various ministries and will be announced as and when the decisions are taken in the next few days."

Jaitley said policy decisions by the US increased inflow of dollar in the US economy compared to other economies. The government is monitoring the impact of external factors like and trade wars on despite its strong fundamentals.

"Due to these two factors our deficit has increased. We have to face this challenge," he said.

India's current account deficit widened to $15.8 billion, about 2.4 per cent of the country's GDP in the first quarter of this fiscal as against $15 billion in the year-ago quarter.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 14 2018. 23:36 IST
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