Study of Factors Influencing Current Account Defcit of India (2007–12) with Special Emphasis on Gold Imports

MRS PUJA RAWAT

Volume : III, Issue : VIII, August - 2014

Study of Factors Influencing Current Account Defcit of India (2007–12) with Special Emphasis on Gold Imports

Mrs Puja Rawat

Abstract :

The period 2007-12 witnessed major developments in terms of the current account deficit of the country. During 2008-09 to 2010-11, CAD averaging at 2.7 per cent of GDP, however, didn�t cause any stress as capital inflows have been more than adequate. Subsequently, during 2011-12, CAD exceeded the level of 4.0 per cent of GDP and there has been net drawdown of reserves to the extent of about USD 13 billion. Keeping the above under consideration, the present study tries to analyse the factors influencing current account deficit of India from the year 2007 to 2012. The rising gold import is the most important factor influencing current account deficit.