New Delhi, Oct. 14 -- India must address its persistent current account deficit (CAD) to stabilize the rupee and attract foreign investment, said Janmejaya Sinha, chairman of Boston Consulting Group (BCG) in India.

"The Indian policy establishment got comfortable with a small current account deficit, given it was a commodity importer. If you see, our current account deficit is essentially a function of oil, gas and gold imports, and we have done nothing seriously to fix it," Sinha told Mint in an interview.

"CAD is a neglected issue. No one talks about it," he said. When energy prices rise, it puts pressure on the fiscal deficit, which puts pressure on the rupee and foreign investors flee, he added. "Such outflows can complicate monetar...