By March-end, trade deficit may be $100-110 billion
The country's trade deficit which improved by 25 per cent in the first nine months of financial year 2016-17 compared to last year, is likely to be in the range of $100-110 billion by March-end, says a report.
During April-December period of the fiscal 2016-17 the trade deficit was at $76.37 billion as against $100.08 billion in the same period last year.
"The trade deficit has improved sharply by almost 25 per cent in the first nine months and with the present trend, the overall trade deficit would be in the region of $100-110 billion for the year (fiscal 2016-17)," Care Ratings said in a report.
Exports were marginally in the positive territory in the first 9 months of the fiscal 2016-17 while imports continue to decline by around 7 per cent.
Talking about the FPI flows, the report said with the US economy showing signs of accelerating and the Federal Reserve announcing its intentions to increase interest rates in a phased manner, debt investments in emerging markets would become less attractive. For the year so far, FPI flows into equity has been positive at $2.5 billion as against outflow of $2.7 billion last year same period, the report said adding that since October there have been outflows.