India needs manageable current account deficit, not a surplus: Chidambaram

File Photo of Chidambaram during a press conference
A day after chief economic advisor (CEA) Krishnamurthy Subramanian stated that the country is likely to have a current account surplus this year, former finance minister P Chidambaram on Tuesday said this means that India, which needs capital, is investing its capital abroad. 

"CEA has confirmed my suspicion that India will end 2020-21 with a current account surplus. But I am puzzled by the tone of his remarks. Is CEA celebrating a current account surplus," Chidambaram tweeted. 

Given that India is a developing country in need of capital, a current account surplus cannot be celebrated. 

"Our policies should ensure that both exports and imports grow smartly leaving a manageable current account deficit," he said. 

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