Current account deficit not alarming, says Finance Minister Arun Jaitley

Finance Minister Arun Jaitley said on Tuesday that country's current account deficit (CAD) was not alarming and it was under control.

"The CAD figure of 2.1 per cent (of GDP) is not alarming. The figure is under control. There are ways of curtailing it and bringing it down further," he said in the Rajya Sabha.

He added that huge quantity of gold import was adding to the CAD.

Country's CAD widened to $10.1 billion for the quarter ended September 30, 2014, data released by Reserve Bank of India (RBI) showed on Monday.

According to the central bank, the net difference between inflows and outflows of foreign currencies, also known as the current account, showed a deficit that widened by 2.1 per cent of the gross domestic product from 1.2 per cent in the corresponding quarter last year.

Jaitley added that foreign exchange was coming to the country through all channels.

"Addition to the reserve is taking place; it indicates a comfortable situation. In a given situation, if there is a negative slowdown in the economy or if the products become non-competitive compared to Chinese products, your exports out of the country can slow down," he said.

"But overall on account of several other things, like FII investment, if foreign exchange reserves in the country are continuing to be added and therefore the kind of situation of concern does not exist at all", Jaitley said.