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India's CAD could exceed 1% of FY26 GDP as external risks intensify

September 09, 2025

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Business Standard

Economists and ratings agencies have stated that India's current account deficit (CAD) could exceed 1 per cent for the current financial year (FY26), due to steep 50 per cent US tariffs and high capital outflows.

- HIMANSHI BHARDWAJ

But they expressed hope that a reworked US tariffs regime, lower crude prices, and a surplus in the services trade could stop the CAD from widening.

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