FM concerned over trade balance if crude rises
07 Feb 2011
According to union finance minister Pranab Mukherjee, if oil prices were to shoot up further, then both the current account deficit and the trade balance would be a matter of concern.
"At this point of time, the trade balance and the current account deficit are manageable. But going forward, we don't know how the current account deficit and the trade balance will pan out," Mukherjee told reporters on the sidelines of a programme yesterday in Murshidabad district in West Bengal.
"If oil prices increase further, then both the current account deficit and the trade balance will be a matter of concern," Mukherjee said after inaugurating on-line the 5,000th rural branch of State Bank of India (SBI) at Sagardighi Railway Station, about 30 km from Kandi in West Bengal.
He said though exports had risen, it is the rise in imports that was significant.
Mukherjee said there had been an increase in imports of capital goods and raw materials.
"I don't know to what extent we can do to control petro-product use. (Due hike in oil prices) the import bill will increase and the trade deficit will be widened," he said.