Recovery of the Indian economy has once again come under cloud with key economic indicators like Current Account Deficit (CAD) and consumer inflation remaining above the comfort level of the Reserve Bank of India (RBI). While CAD reached a high of 6.7% of GDP in the December 2012 quarter, consumer price index grew at 10.2% in April 2013. Both these indicators are set to deteriorate further as the Indian currency has depreciated sharply against the US Dollar (USD) in the last one quarter. The Indian Rupee has changed from ` 54.4/USD in April 2013 to ` 59/USD in June 2013 resulting in an 8.5% fall.
Source : Knight Frank