India: Economy more stable, current account deficit to be contained below $40bn

India said Friday that its economy "is more stable" than it was one-and-a-half years ago and the current account deficit (CAD) would be contained below 40 billion U.S. dollars. "The economy certainly is more stable today than what it was 18 months ago. That is reflected in the strengthening of the rupee, that is reflected in heightened interest of investors, both foreign direct investments and foreign institutional investors," Indian Finance Minister P. Chidambaram told the media in the national capital. He added "On the CAD, the budget speech says it will be contained below 45 billion U.S. dollars. Today, 23 days before the end of the year, we can say confidently that the CAD will be contained at below say 40 billion U.S. dollars." The CAD, the excess of foreign exchange outflows over inflows, came down to 26.9 billion U.S. dollars in the first half of fiscal year 2013-14 from 37.9 billion U.S. dollars in the first half of 2012-13.