Budget: Foreign investment encouraged
New Delhi, Feb 28 : Union Finance Minister P Chidambaram on Thursday said foreign investment has to be encouraged to tide over Current Account Deficit.
"The Current Account Deficit (CAD) of India continues to be high mainly because of "our excessive dependence on oil imports, the high volume of coal imports, our passion for gold, and the slow down in exports. This year, and perhaps next year too, we have to find over USD 75 billion to finance the CAD," said Chidambaram, while presenting the General Budget 2013-14 in Lok Sabha on Thursday.
Stating that there are only three ways to tide over the problem FDI, FII or External Commercial Borrowings (ECB), Chidambaram said this is why he had been emphasizing that at the present juncture, India does not have the choice between welcoming and spurning foreign investment.
"We have to encourage foreign investment that is consistent with our economic objectives," he added.