Crisil Sees India’s CAD Rising to 2 pc of GDP in FY27
Apr 17 (BNP): India’s current account deficit (CAD) is expected to widen to around 2 per cent of GDP in FY27, even if crude oil prices remain in the range of USD 82–87 per barrel, according to a report by Crisil.
The report noted that external pressures on the trade balance are likely to persist, driven by steady import demand and global economic factors. While stable oil prices may offer some relief, they are unlikely to fully offset the broader structural challenges impacting the current account.
Crisil said that rising domestic demand and continued dependence on imports, particularly in energy, could contribute to the widening deficit.
However, the report also indicated that strong services exports and remittance inflows are expected to provide some cushion, helping manage the overall impact on the external sector.
Overall, India’s external position is expected to remain manageable, though the widening deficit highlights the need for continued focus on export growth and reducing import dependence over the medium term.
