Kandi (West Bengal), Feb 6 (IANS) Union Finance Minister Pranab Mukherjee Sunday said if oil prices shoot up further, then both the current account deficit and the trade balance would be a matter of concern.
“At this point of time, the trade balance and the current account deficit are manageable. But going forward, we don’t know how the current account deficit and the trade balance will pan out,” Mukherjee told reporters on the sidelines of a programme here in West Bengal’s Murshidabad district.
“If oil prices increase further, then both the current account deficit and the trade balance will be a matter of concern,” he said after inaugurating on-line the 5,000th rural branch of State Bank of India (SBI) at Sagardighi Railway Station, about 30 km from here.
He also inaugurated the 13,333rd branch of SBI and 22,222nd ATM of the State Bank group here.
The minister said though exports have gone up, imports have risen significantly.
Mukherjee said imports of capital goods and raw materials were increasing. “That will increase the production and manufacturing sector,” he said.
“I don’t know to what extent we can control petro-product use. (Due hike in oil prices) the import bill will increase and the trade deficit will be widened,” he said.