India Inc on Wednesday said it expects the current account deficit to narrow in the coming months and rupee to stabilise around 60 per dollar by the end of this year.
"Rising exports and significant reduction in trade deficit is indeed good news, and these reflect the dynamism of Indian exporters as well as the positive impact of proactive support from the government," Ficci President Naina lal Kidwai said.
As India’s trade deficit has shrunk by over 60 per cent in the month of September and by about 13 per cent in the first half of this fiscal, it would help contain the current account deficit, she added.
"Going ahead, we expect CAD to fall significantly in Q3 and Q4 of 2013-14 on narrowing trade deficit. CAD is expected at around 3.8 per cent of GDP in 2013-14 compared with 4.8 per cent in 2012-13," President of PHD Chamber Suman Jyoti Khaitan said.
"We expect rupee to recover further from its current level and consolidate at around 60 per USD by Dec-end 2013, driven by factors such as improving capital flows, export- import ratio and overall current account balance," he added.
"The trade data gives positive signal to industry, as for the third successive month, there has been an upsurge in exports. This clearl y indicates that Government measures for boosting exports are yielding positive results," Chairman of CII National Committee on Exports-Imports Sanjay Budhia said.