- India’s gold imports have contracted by 40% after the govt put curbs in place and this has prompted the decline in trade deficit to about $10 billion.
- Exports grew 5.26% suggesting in a change in its earlier weak momentum.
- Imports also reduced by 15%.
- Current account deficit (CAD) was around 2% of gross domestic product due to slowing gold imports, inflation among other factors.
- Experts believe that the new Foreign Trade Policy should target to increase exports to at least $750 billion by 2019 by focussing of getting the CAGR to 19% per annum, and uplifting the manufacturing sector which has registered a decline this year.
- The Commerce Ministry has already kicked off meetings to gather feedback on the formulation of the Foreign Trade Policy 2014-19.
- Read at: http://www.thehindu.com/todays-paper/tp-business/plummeting-gold-imports-help-narrow-down-trade-deficit/article5995045.ece