There are only three ways to counter this three letter monster called CAD (current account deficit).
“India does not have the choice between welcoming and spurning foreign investment,’’ declared Finance Minister P. Chidambaram in his Budget speech on Thursday.
How to find $75 billion to finance this monster?
The ways to do that are through FDI (foreign direct investment), FII (foreign institutional investment) and ECB (external commercial borrowings).
“We have to encourage foreign investment,’’ declared the Finance Minister. The current account deficit has indeed been giving the Finance Minister “grater worry”. So much so, Mr. Chidambaram feels foreign investment is an imperative.
