Tackling Current Account Deficit in India
TACKLING CURRENT ACCOUNT DEFICIT IN INDIA
INTRODUCTION
There has been a sharp increase in the Current Account Deficit in Indian economy. In previous years the current account deficit increased moderate rate but in the fiscal year of 2011-12 there was sharp increase in current account deficit, marking a rise to nearly 4.2 per cent of GDP. High current account deficit has always posed serious implications for an economy and therefore for India it is a matter of concern. This research paper deals with the impact of current account deficit on the Indian economy and analyzes the causes and measures to tackle current account deficit. The researcher has studies the current account deficit. This research paper has been divided into 5 sections. The first section deals with questions such as what is current account, causes and cures of CAD. The second section the researcher has tries to provide reasons and major facotrs which lead to increasing deficit in India. In the third section provides current account deficit for the past three years and the present situation of India’s current account. The fourth section talks about the measures which can correct the problem of current account deficit in India. In the fifth section the study the government measures and what government can do and what the government is doing to tackle it and consider the various programmes and various schemes and policy that government has come up with has been described.
NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
Page 1
TACKLING CURRENT ACCOUNT DEFICIT IN INDIA
Table of Contents
Introduction ................................................................................................................................ 1 Chapter- 1 -What is Current Account Deficit? .......................................................................... 3 Causes and cures of CAD ...................................................................................................... 4 Chapter – 2 –Current Account
INTRODUCTION
There has been a sharp increase in the Current Account Deficit in Indian economy. In previous years the current account deficit increased moderate rate but in the fiscal year of 2011-12 there was sharp increase in current account deficit, marking a rise to nearly 4.2 per cent of GDP. High current account deficit has always posed serious implications for an economy and therefore for India it is a matter of concern. This research paper deals with the impact of current account deficit on the Indian economy and analyzes the causes and measures to tackle current account deficit. The researcher has studies the current account deficit. This research paper has been divided into 5 sections. The first section deals with questions such as what is current account, causes and cures of CAD. The second section the researcher has tries to provide reasons and major facotrs which lead to increasing deficit in India. In the third section provides current account deficit for the past three years and the present situation of India’s current account. The fourth section talks about the measures which can correct the problem of current account deficit in India. In the fifth section the study the government measures and what government can do and what the government is doing to tackle it and consider the various programmes and various schemes and policy that government has come up with has been described.
NATIONAL LAW SCHOOL OF INDIA UNIVERSITY
Page 1
TACKLING CURRENT ACCOUNT DEFICIT IN INDIA
Table of Contents
Introduction ................................................................................................................................ 1 Chapter- 1 -What is Current Account Deficit? .......................................................................... 3 Causes and cures of CAD ...................................................................................................... 4 Chapter – 2 –Current Account
Bibliography: 1 2 T.R.Jain and V.K.Ohri, INTRODUCTORY MICROECONOMICS AND MACROECONOMICS, 275, 6th edn.(2008) 12 Available at http://www.economicshelp.org/blog/5776/trade/uk-balance-of-payments/ (last visited on December 29, 2012) 15 Refer Marshall Learner Index at http://glendon.yorku.ca/sites/xavierhome.nsf/00a275e5bafb6d458525647900760437/4f350d7b79a4ad76852570 1b007850b9/$FILE/Marshall.pdf (last visited on December 29, 2012) Government of India, Economic Survey 2010-2011, 140, (2011), http://indiabudget.nic.in/budget2011-2012/survey.asp (last visited on December 29, 2012). 20 Id.