May 06, 2024 06:50 (IST)
India trade deficit affects rupee: Economic Survey
New Delhi, July 9 (IBNS) The Economic Survey 2013-14, presented Wednesday in the Lok Sabha by Union Finance Minister Arun Jaitley, has noted that as India had a large trade deficit in the first quarter, negative market perceptions led to sharper outflows in the foreign institutional investors (FIIs) investment debt segment, leading to 13.0 per cent depreciation of the rupee between May 2013 and August 2013.
The government swiftly moved to correct the situation through restrictions on non-essential imports like gold, custom duty hike in gold and silver to a peak of 10 per cent, and measures to augment capital flows through quasi-sovereign bonds and liberalization of external commercial borrowings, it said.
The RBI also put in place a special swap window for foreign currency non-resident deposit (banks) [(FCNR (B)] and banks’ overseas borrowings through which US$ 34 billion was mobilized.
The one-off flows arrested the negative market sentiments on the rupee and, in tandem with improvements in the BoP position, led to a sharp correction in the exchange rate and a net accretion to reserves in 2013-14.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Paytm COO Bhavesh Gupta steps down citing personal reasons Sat, May 04 2024
Apple CEO Tim Cook expresses happiness over company's double-digit progress in India Sat, May 04 2024
Market Update: IPO performance, economic trends, and global Insights Sat, May 04 2024
6 Adani Group companies get show-cause notices from SEBI Sat, May 04 2024
RBI permits SPDs to borrow in foreign currency Sat, May 04 2024
Delhi High Court orders SpiceJet to pay $1.58 million to engine lessors by May 22: Report Fri, May 03 2024
Mahindra & Mahindra gets 674 patents in FY24 Fri, May 03 2024
JSW Infrastructure Q4FY24 PAT grows 9% YoY to Rs 329 cr Fri, May 03 2024