India’s current account deficit likely to widen to 1.5% of GDP in FY27 as higher oil prices weigh: Report

India’s current account deficit is projected to widen significantly by fiscal year 2027. Higher crude oil and commodity prices will drive this projected increase in the deficit. Merchandise imports grew faster than exports in June, widening the trade gap. Petroleum exports saw a substantial sequential decline during the same period. Services sector surplus narrowed, though it continues to cushion the external account.