West Asia conflict may double India's current account deficit
pre-market1 source ↓written by the desknot a recommendation
- in FY27
- 2% of GDP
- up from below
- 1% in FY26
- may also face
- 4.3%
- in annual remittances
- $120 billion
- from Gulf economies
- $30-40 billion
India’s current account deficit (CAD) could exceed 2% of GDP in FY27, up from below 1% in FY26, due to the ongoing West Asia conflict, according to chief economic adviser V Anantha Nageswaran. The fiscal deficit target of 4.3% may also face pressure from rising commodity prices and lower remittances, particularly from the Gulf region.
• India receives $120 billion in annual remittances, with $30-40 billion from Gulf economies.
• Potential slowdown in Gulf labor markets could worsen external balances.
Not investment advice. For informational purposes only.