Current Account Deficit  

Get ready for Budget 2024 insights with essential terms explained, from CAD to MAT, outlining fiscal planning and implications.

The Organisation for Economic Co-operation and Development (OECD) on 21st November slightly cut India’s economic growth forecast for 2019 to 5.8% but said it would pick up to 6.2% in 2020 and further to 6.4% in 2021. Paris-based OECD said private investment would bounce back as capacity utilisation rises and the cost of borrowing for the corporate sector declines. According to OECD India has been a growth champion in recent years and has succeeded in taming inflation, the current account deficit, and non-performing loans. ​​​​​​​

In October, India introduced a second set of tariff hikes owing to burgeoning current account deficit and the fall in the rupee.