India's CAD projected to reach 2.2% of GDP due to oil prices
Crisil forecasts India's current account deficit to rise to 2.2% of GDP, up from 0.8% in fiscal 2026, driven by soaring oil prices averaging $90-$95 per barrel. This increase poses challenges for India's external finances and trade balance.
pre-market1 source ↓written by the desknot a recommendation
- this fiscal year
- 2.2% of GDP
- in fiscal 2026
- 0.8%
- projected to average
- $90-$95 per barrel
- of India's total
- 36%
India's current account deficit is expected to widen to 2.2% of GDP this fiscal year, up from 0.8% in fiscal 2026, as per Crisil. The surge in Brent crude oil prices, projected to average $90-$95 per barrel, is a key driver, impacting the nation's external balance.
• Oil constitutes 36% of India's total goods trade deficit.
• Global trade disruptions and declining demand are also pressuring merchandise exports.
This situation may challenge India's external finances and trade dynamics.
Not investment advice. For informational purposes only.