New Delhi: Former Finance Minister P. Chidambaram recently said, 'CEA has confirmed my suspicion that India will end 2020-21 with a current account surplus'. Earlier, Subramanian had said in a statement, 'Due to the recently announced economic reforms by the Government of India, the current account can go into the surplus'. Now in response to his statement, Chidambaram has tweeted.
CEA has confirmed my suspicion that India will end 2020-21 with a current account surplus
— P. Chidambaram (@PChidambaram_IN) November 24, 2020
But I am puzzled by the tone of his remarks. Is the CEA celebrating a current account surplus?
In this tweet, he has said, "CEA has confirmed my suspicion that India will end 2020-21 with a current account surplus. But I am puzzled by the tone of his remarks. Is the CEA celebrating a current account surplus? " In another tweet, he writes, "Given that we are a developing country in need of capital, we cannot celebrate a current account surplus." Chidambaram says, 'As many economists have pointed out, a current account surplus means that India, a country that needs more capital, is investing its capital abroad! "
Given that we are a developing country in need of capital, we cannot celebrate a current account surplus
— P. Chidambaram (@PChidambaram_IN) November 24, 2020
As many economists have pointed out, a current account surplus means that India, a country that needs more capital, is investing its capital abroad!
On Monday, CEA gave the address at CEI's MNCs Conference 2020. During this, he said in his address that the implementation of labour law reforms has eased compliance with increased thresholds, change of MSME definition and easier layoffs norms. He also said that, due to the measures taken by the government for economic recovery, the Indian economy can see current account surplus even after attempting to end the Covid-19 crisis. The government has taken several market liberalization measures in which it has been announced to support the economy amid the epidemic. These include raising FDI limits in defence as part of economic packages, coal mining, reforming labour law. '
Our policies should ensure that both exports and imports grow smartly leaving a manageable current account deficit
— P. Chidambaram (@PChidambaram_IN) November 24, 2020
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