UPSC Practice recommends BoP likely to drop, time to rein in CAD.
GoI must give a renewed push on reforms to attract more foreign direct investment. FII inflows tend to be fickle. But resilient services income offers a stable source of forex inflow. Raising exports (and export competitiveness) in manufacturing and services will make imports sustainable and rein in CAD.
Courtesy: ET Editorial-Opinion-Economic Times