The Prime Minister's Economic Advisory Council on Tuesday said it expects gold imports to come down this fiscal which could reduce the current account deficit (CAD) to 3.5 percent of GDP.
"We do expect CAD in the current year, that is 2012-13, to come down to something like 3.5 percent from the high level of 4.2 percent of GDP last year," PMEAC Chairman C Rangarajan said at an event in New Delhi.
India's CAD had touched a record high of 4.2 percent of GDP in 2011-12, on the back of a wider trade gap and lower capital inflows.
Rangarajan said he expected gold and coal imports to decline in the current fiscal. He also said the capital flows should be encouraged into the country in the short term.