HSBC lowers India’s CAD forecast for Financial Year 13-14 to 3.4%.
Global financial services major HSBC today lowered India’s current account deficit (CAD) forecast for this financial year to 3.4 per cent of GDP from 4.1 per cent earlier.
HSBC said the country’s CAD is at an unsustainable level, and expected to gradually decline in the coming years and in 2014-15, it is likely to be at 3.2 per cent of GDP.
HSBC’s CAD projections factored the increase in imports during the festive season and rise in coal imports to help meet demand from power plants in the coming months.
In the next fiscal year, FY15, we expect the deficit to hold broadly steady in nominal terms and decline to 3.2 per cent of GDP.