India's chief economic adviser says current account deficit biggest concern

PUNE (REUTERS) - India's record high current account deficit is the country's biggest concern, Finance Ministry's Chief Economic Adviser Raghuram Rajan said on Tuesday.

India's current account deficit widened to a record high of 5.4 per cent of GDP in the September quarter as export growth slowed more sharply than imports, with a similar gap expected in the December quarter likely to prolong weakness in the rupee.

The current account deficit is expected to stay at record high for the entire 2012 TO 2013.

Mr Rajan was speaking at the convocation ceremony of a banking and finance institute in the western city of Pune.

He also said food inflation persisting at a high level was not easy for the central bank to manage.

India's annual consumer price inflation accelerated to 10.79 per cent in January from the previous month, government data showed.