Reduction in CAD 30 12 2013 Reduction in CAD, pick up in exports improve India’s external sector: RBI The Reserve Bank today ruled out any major impact on domestic markets by the US Fed’s tapering its monthly bond-buying programme from later this week. The apex bank said that India’s external sector has improved with reduction in Current Account Defecit, CAD and a pick up in exports. In its eighth Financial Stability Report released today, RBI said, external sector risks have been reduced considerably and the effect of the tapering on the economy is expected to be limited and short-lived. On the occasion of releasing the Report in Mumbai, RBI Governor Raghuram Rajan warned on the high inflation as a hurdle for easy money policy. He said the outlook for the country’s economy has improved, with export growth regaining momentum, but growth is still weak. Mr. Rajan also warned against the rising tide of bad loans saying risks to the banking system have incr...