New Delhi, Sept 26 (KNN) The commerce and industry ministry has said that government’s export promotion measures, implementation of minimum standards for imports, and continued healthy inflow of remittances by non-resident Indians will help control the country’s rising current account deficit (CAD).

Commerce Secretary, Anup Wadhawan said that terming the present petroleum situation as a ‘temporary aberration’, the government can increase tariffs within the bound rates to control imports. 

Bound rates are the rates that countries commit themselves to at the World Trade Organisation (WTO). They cannot be exceeded.

Wadhawan by emphasizing that the government will exercise all options available optimally said that the developing countries’ infant industries need protection and India would use the options to protect consumers from substandard products.

Deterioration in CAD has led due to a sharp depreciation in the rupee and a surge in the price of crude oil.

India’s CAD jumped to 2.4% of GDP in the first quarter of 2018-19 against 1.9% in FY18.

The finance ministry recently announced a slew of measures to control CAD and said it would also consider curbs on non-essential imports. 

Export incentives will aid the country said Wadhawan to achieve record export numbers this year even though there are two challenges of petrol prices and rising protectionism.

“We are engaging with line ministries on a weekly basis. We are certain to maintain 16% growth in exports this year,” he said. India’s exports rose 19.21% to $27.84 billion in August. 

Proper mechanisms will be put in place to ensure that the trade with Iran does not get disturbed; the commerce ministry has told exporters.

“We are certainly urging the departments concerned to put in place an arrangement, as and when required, which ensure that there is no disruption in trade,” Wadhawan said. 

Cut oil imports from the Gulf nation to “zero” has been told by US to India and other countries by November 4, or face sanctions.

India is yet to take a call on complying with the US sanctions on Iran.