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CAD may rise to 1.7 pc on tariff pressure: Study
The Political and Business Daily
|November 20, 2025
INDIA'S current account deficit (CAD) is expected to rise to 1.7 per cent of GDP in the current financial year FY26, higher than the bank's earlier projection of 1.2 pc, according to a report by Union Bank of India.
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The rise is mainly attributed to persistent global trade tariff pressures that continue to keep the trade deficit elevated despite weak demand, lower commodity prices.
It stated, “We expect a rise in current account deficit to 1.7 pc of GDP in FY26, as tariff pressures continue to keep trade deficit elevated”.
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The Political and Business Daily
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