Government mulls exploring newer markets for exports to curtail current account deficit

With the current account deficit (CAD) spiking to 4.4 percent of GDP in the second quarter and exports declining 12 percent in December, the government is working on measures to boost exports to newer markets and check the imports of Chinese goods.

CNBC-TV18 learns that India is aiming to increase its exports to countries which are experiencing growth like Brazil. India is also looking to add more geographies to its export list as several key nations to which exports used to take place earlier are experiencing a slowdown.

The possibility of a rise in electronics exports to Russia is also being looked at due to a huge demand for Indian electronics in that country.

Government sources have indicated that under-invoicing and import of sub-standard goods from China continues to remain a cause of concern. Hence action is being taken by the customs and revenue department in this regard.

The government is looking at domestic production, food stock and market availability before pushing for any food exports.

All government departments are ensuring ample availability of wheat stock and any clearance for the export of wheat will only come after several government departments reach a consensus about ample domestic availability of wheat.

Last year the export of wheat was heavily regulated by the government after crops had failed in various parts of North India due to a severe heat wave.