New delhi, Jul 22: was the highest in 30 years at 4.2 percent of the GDP, primarily driven by expanding oil and gold imports. Even during the dark days of 1991, the CAD levels had stood at 3 percent.
According to World Gold Council data, the country's gold imports - it imports nearly its entire requirement - grew 44 percent in FY12 to 969 tonnes or USD 60 billion in FY12.
Similarly, government data said oil imports stood at USD 155.6 billion of the total imports of USD 489 billion.
The deficit is expected to widen further given a string of factors like crude prices continuing to be elevated and the record depreciation in the rupee, if the country does not take immediate action on the front.
The government has been proactive and had announced a hike in customs duty on standard gold to 4 percent from 2 percent.
The customs duty on non-standard gold was also hiked to 10 percent from 5 percent.
“Our problem of import is only two products—gold and oil.
If we don't import these two products, our problem is over,” Chakrabarty said.
He urged financial wizards like chartered accountants to popularise the non-productivity of investment in gold.
On the oil front, the Deputy Governor had a noble suggestion: increasing the usage of a bicycle for commuting needs which will also help physical fitness levels, pollution and traffic conditions in a city like Mumbai, infamous for its jams.
