Planning Commission deputy chairman Montek Singh Ahluwalia has said that he expects the country's current account deficit (CAD) to come down to 2.5 per cent of gross domestic product (GDP) in the next two to three years from about 5 per cent at present.

"Traditionally we have seen it at 2.5 per cent of the GDP at comfortable level. I think we will take at least two to three years to get there, I think this country for another 20 years can run CAD at around 2.5 per cent of GDP," he said. He was speaking at the meeting of the Asia Pacific Regional Committee.

The Prime Minister's Economic Advisory Council (PMEAC) has said that India's CAD is expected to be around 5 per cent of GDP for 2012-13. The CAD had touched it's highest at 6.7 per cent of the GDP in the third quarter of the financial year 2012-2013. Experts said that the falling prices of crude oil and gold will reduce the country's current account deficit, giving more boost to the stock market in the country. There are indications that the improved position in the current account position will allow the government to strengthen its financial position.

Ahluwalia has said on Monday that he expects the Indian economy to grow in the range of 7 to 8 per cent during the coming five years based on the precious records.