Crisil Projects India Current Account Deficit to Reach 1.5%
Crisil forecasts India's current account deficit will widen to 1.5% of GDP in fiscal 2027 due to rising commodity prices and trade disruptions.
The ratings and analytics firm Crisil projects that India's current account deficit will widen to 1.5% of gross domestic product in fiscal 2027, up from 0.6% in fiscal 2026. According to a July 2026 report, the expansion is primarily driven by higher on-year crude oil and commodity prices.
Crisil forecasts crude oil prices to average between USD 82 and USD 87 per barrel this fiscal, an increase from the previous average of USD 70.3 per barrel. Geopolitical tensions in West Asia continue to create uncertainty regarding these projections and the sustainability of existing interim agreements.
Recent trade data indicates a growing merchandise trade deficit, which reached USD 30.4 billion in June. This growth followed a 31% year-on-year surge in imports, totaling USD 70.8 billion, led by chemicals, machinery, and electronics. While services exports increased by 2.9%, the services trade surplus narrowed to USD 15.1 billion from USD 16.2 billion the previous year.
Keep reading in the app
The full story and every source, free in the app.
Coming soonGoogle Play