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India's CAD to face upward risk amid rising commodity prices

The Business Guardian

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July 19, 2025

India's current account deficit (CAD) is likely to see a marginal rise in FY26 as there is minor upward risk on it, noted a report by Union Bank of India.

- AGENCIES

India's CAD to face upward risk amid rising commodity prices

However, the UBI report maintained its earlier forecast of a widening CAD to 1.2 per cent of GDP in FY26, compared to an estimated 0.9 per cent in FY25. The report also mentioned that there are downside risks to the FY25 estimate.

It stated, "We see a marginal upward risk to our estimate for current account (C/A) deficit for FY26 GDP."

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