Red flags on the economy...

The struggling Indian economy ended the year 2012 with a pair of bad news – an all-time high current account deficit (CAD) and a fiscal deficit that touched 80.4 per cent of the budgeted target for the full financial year. CAD widened to 5.4 per cent of the gross domestic product ( GDP) in the July-September quarter, significantly higher than the 4.2 per cent in the corresponding period of last financial year, as export growth slowed more sharply than import growth, dragging the balance of payments into the red once again, Reserve Bank of India figures released today showed.

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