CAD: The cad behind stunted growth?

.....In fact, we have to realize that compressing the dimensions of CAD is as imperative as financing the CAD. The CAD of 5 per cent of GDP for 2012- 13 stands as a monument to our mismanagement of macroeconomic policy. The credit of spelling out a more appropriate approach to tackle CAD should go to the Reserve Bank of India ( RBI). " With a lower growth, the sustainable level of CAD is now assessed at around 2.5 per cent of GDP. For minimizing the possibility of external shocks further disrupting India's growth sustainability over the next few years, it is important not only to focus on financing of the CAD, but also on compressing the CAD to lower, manageable levels. Otherwise, there are risks to the CAD from both domestic and external events. In the recent period, the CAD has been managed by improving debt inflows.....

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