The only way to contain Current Account Deficit (CAD) is to increase the domestic production of oil & coal and restraining the consumption of gold, says the Union Finance Minister Shri P. Chidambaram. The Minister said that the major reason for our large CAD is that we have huge dependence on import of certain items like oil, coal and gold.
The Finance Minister said that in order to increase our production, we must get our policies and priorities right as long term measures. All European economies except Germany are in recession and so is the case with Japan and other developing economies. Only US economy is showing some signs of revival. However, India continues to remain a desired destination for FDI and FII, he added.
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