India's Current Account Deficit Likely to Widen to 1.2% of GDP in FY26: Report

India's current account deficit is expected to nearly double in the Financial Year 2026, rising to 1.2 per cent of GDP from 0.6 per cent in FY25, Union Bank of India said in a report.

- TDG NETWORK

The estimate carries an upward risk, driven by evolving trade dynamics and global commodity price movements.

"We see an upward risk to our estimate for the current account (C/A) deficit for FY26 GDP. We expect higher; almost double versus last year of widening in C/A deficit in FY26 to 1.2 per cent in GDP vis-a-vis an 0.6 per cent in FY25," the report added.