Dismissing concerns over high current account deficit (CAD), India on Wednesday said it was not a major problem and the government has already initiated steps to contain it.
"The question about the sustainability of the levels of CAD need to be allayed by limiting the size of the deficit in the medium term; in the short run the financing of the CAD is not a serious issue in terms of an impending macroeconomic crisis," department of economic affairs secretary R Gopalan said in Manila.
The government has already taken measures to contain import of gold and increased duty rates, he said in a presentation at the ADB's 45th annual meeting in Manila.
It is estimated that India's CAD during 2011-12 would be over 3.5% of the GDP (Gross Domestic Product).
CAD results when a country’s total imports and transfers are higher than its total exports and transfers, making it a net debtor to the rest of the world.
Gopalan also said that the government takes the country's credit ratings very seriously.
"Let me also touch upon the issue of credit rating which we take as a wake-up call. Major credit rating agencies give out the sovereign credit rating of each nation as an absolute grade, it may be important to look at the ratings relative to others," he said.
The statement assumes significance in light of the recent action by global credit rater Standard and Poor's. It revised downward the rating outlook from stable to negative.