Oil Shock Ahead? Crisil Sees India’s Current Account Deficit Climbing To 2.2%

Summary

India's current account deficit is expected to rise to 2.2 percent of gross domestic product in the current fiscal year, up from 0.6 percent in the previous year. This increase is primarily due to elevated energy prices, which are anticipated to weigh on the external balance, with Brent crude forecasted to average 90 to 95 dollars per barrel. The country's merchandise trade deficit has also widened to 28.2 billion dollars in May, an increase from 22.6 billion dollars a year ago.