NEW DELHI: India may have to dip into its foreign exchange reserves to finance the current account deficit (CAD) in 2013-14, the World Bank said.

“International reserves could decline somewhat in 2013-14 but would still amount to a comfortable import cover of approximately five months,” the World Bank said in its latest India Development Update.

Economic affairs secretary Arvind Mayaram had said earlier this month that India would finance its CAD this year without drawing down on its reserves. C Rangarajan, chairman of the Prime Minister’s economic advisory council, had said India may have to draw about $9 billion from its foreign exchange reserves to finance the CAD.