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Domestic demand may drive higher imports
The Sunday Guardian
|September 28, 2025
An uptick in non-oil non-gold imports is likely in the coming months as domestic demand expands, at a time when exports could weaken due to mounting tariff pressures.
According to a report by ICICI Bank Global Markets, India's external sector is showing mixed signals, with a resilient current account balance but growing concerns around capital flows and export sustainability.
India's current account deficit (CAD) for Q1FY26 was contained at just 0.2 per cent of GDP (USD 2.4 billion), due to strong services exports and robust remittance inflows.
However, the merchandise trade deficit widened to USD 68 billion from USD 64 billion in Q1FY25, largely due to stronger imports and plateauing goods exports.
Dit verhaal komt uit de September 28, 2025-editie van The Sunday Guardian.
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