Dr.T.V.Gopalakrishnan , Mumbai , says: The high Current accout deficit can be attributed to several reasons which include the import of gold. The oil price hike,depreciation of rupee,poor inflow of external funds thanks to lack of confidence in the economy,decline in GDP growth etc have contributed to higher CAD and gold imports have added to the burden.The craze for gold can be contained and the gold holdings in the country need to be converted into productive assets to support GDP growth.Containment of gold imports will help to improve CAD but the economy has to perform well in terms of GDP growth, exports, inflation,and stable exchange rate.
12 Apr 2012, 1830 hrs IST
(This is in response to an opinion poll in ET dated 12/04/12 on import of Gold and high level of CAD. This comment appeared in Et dated 12/04/12).
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