External debt in safe limits, export slowdown to continue

GN Bureau | February 26, 2016


#Economic Survey   #Budget Session   #Arun Jaitely  

The economic survey 2015-16 shows that the prudent external debt policy of the government has resulted in external debt remaining within safe and comfortable limits and in containing its rise. India’s balance of payments (BoP) position remained comfortable during the first half of 2015-16.  Low levels of current account deficit coupled with moderate rise in capital inflows resulted in rise in foreign exchange reserves of $10.6 billion in first half of 2015-16.  India’s foreign exchange reserves at $351.5 billion as on February 5, 2016 mainly comprised foreign currency assets equal to $328.4 billion (93.4% of the total) and gold at $17.7 billion. Between April 2015 and January 2016, the average exchange rate of the rupee depreciated to Rs 65.04 per US dollar as compared to Rs. 60.92 per US dollar in April 2014- January 2015.

The growth in India’s exports declined year on year by 17.6% and they stood at $217.7 billion. The imports have also declined by 15.5% in the current financial year to $324.5 billion US dollars.  Lower levels of Petroleum Oil Lubricants (POL) imports were the main reason for the decline in total imports this year so far.  As a result, the trade deficit decreased to $106.8 billion as compared to $119.6 billion in the corresponding period of 2014-15.  The economic survey further says that while exports slowdown may continue for a while before picking up in the next fiscal, continuance of low commodity prices globally augurs well for sustaining low trade and current account deficit.
 

Comments

 

Other News

A walk down the rich history of Ayurveda

The Indic Quotient: Reclaiming Heritage through Cultural Enterprise By Kaninika Mishra Bloomsbury India, 230 pages, Rs. 499    Over the past decade, India has seen a significant rise in passion for enterprise as well as pride in her

Is China gearing up for prolonged conflict with India?

International observers will keenly watch the Chinese Communist Party Central Committee meeting next month. The central committee is the highest organ of the CCP with a mandate to execute the decision of the National Congress which is convened once every five years.   Besides economy, r

TRP-driven model bred irresponsibility: Sudhir Chaudhary

News profession is organic in nature, requires responsibility and discipline, and there is no room for mistake. To maintain high standards of accuracy you need discipline and hygiene in the newsroom. Sudhir Chaudhary, editor in chief of Zee News, Zee Business and Wion, has said that a TRP-driven business m

This Mumbai NGO empowers children with skills

When Dharmendra Pandey, a fruit-seller had to leave Mumbai after the imposition of the lockdown during the Covid-19 pandemic, and return to his village in Uttar Pradesh, he was staring at economic uncertainties ahead. Little did he know that his 16-year-old son, Mahavir, had acquired skills that would come

Masks: Awareness: near-total, compliance: half-way

Wearing a face mask is the first line of defence against the novel coronavirus, along with maintaining social distance and frequently washing hands with soap. More than six months after the outbreak of Covid-19, nearly 90 percent of people in India have become aware of the necessity of wearing a face mask,

Covid-19: Daily recoveries cross 1 lakh mark, new cases far fewer

Is India finally gaining an upper hand over the Covid-19 pandemic? After weeks of new cases hitting 90,000-plus every day, the tide seems to be turning, as the number came down to 75,083 on Tuesday, and the recoveries were not only higher than that but crossed the 1 lakh mark too. The countr

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter