As per the Department of Economic Affairs (DEA) Secretary Arvind Mayaram, India’s current account deficit (CAD) for 2012-13 is likely to be less than 5 percent of the Gross Domestic Product (GDP). The CAD, which occurs when a country's total imports of goods, services and transfers are greater than its exports, has reached an all-time high of 6.7 percent of GDP in the 3rd quarter of FY13. By adding further, he said despite all gloom and pessimism about the growth, the fundamentals of Indian economy are very strong.
Referring to the finance ministry meeting with the representatives of three global rating agencies-Fitch, Moody's and Standard and Poor's, Mayaram said that ministry did not make a pitch for rating upgrade, but engaged with them for them to get the right information. Moreover, with the strong measures that has been taken by the finance minister in last 7-8 months, especially on fiscal consolidation, the question about credibility has also come down.
