Business Standard

Change begins at home

Slower world growth could weigh on India's external finances despite a weaker rupee propping up exports - a case for structural reforms

Illustration, economy, indian economy, CAD, growth, india's growth
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Illustration by Ajay Mohanty

Pranjul Bhandari
India's growing vulnerability to global conditions is well known. The rise in oil prices has increased the net oil import bill by 1 per cent of GDP over the last two years. And it's not just oil. The non-oil current account (C/A) deficit has also worsened. Even before the investment cycle has picked up, imports have risen, led by coal, electronics and precious gems. The biggest factor of all is exports. Over the last four years, non-oil exports have fallen by 4 per cent of GDP.

Add to this the dwindling affection of foreign investors towards emerging markets has resulted in
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Oct 29 2018 | 1:27 AM IST

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