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A 15% increased inward remittances from expatriates have
contained current account to about 2.5% of the USD 800
billion Indian economy. The Indian import-export trade
deficit this year is expected to be about USD 40 billion;
USD 135 billion import minus USD 95 billion export. Experts
caution that these figures refer only to data captured by
the Government and if defense expenditure is included, the
deficit would be much higher. Significantly, inflows from
remittances exceed all other capital inflows put together
and this trend is expected to continue.
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