Economy more stable now than 18 months ago: Chidambaram

Economy more stable now than 18 months ago: Chidambaram Zee Media BUreau

New Delhi: India's current account deficit (CAD) will be contained at below USD 40 billion, Finance Minister P Chidambaram said on Friday.

Economy is now more stable than 18 months ago and Government will achieve fiscal deficit target, he said further.

Chidambaram said it is time to look for innovative methods to help banks raise capital.

Meanwhile, RBI Governor Raghuram Rajan said today that new bank licences will be issued in the next few weeks.

RBI will seek Election Commission approval for issuing licences, he said.

Analysts have pegged the full-year current account deficit target at under 2 percent of India's GDP following a massive improvement in the third quarter, when it dropped to an eight-year low of 0.9 percent, but warned CAD will be close to 3 percent the next fiscal.

With agency inputs