India’s current account balance has recorded a $7 billion surplus (0.7 per cent of GDP) in Q4 FY25, driven by stronger exports and lower imports, according to Ind-Ra.
However, global trade uncertainties, US tariffs, and geopolitical tensions may widen the deficit to 1.2 per cent of GDP in Q1 FY26.
A potential Strait of Hormuz disruption could push the CAD beyond 1.5 per cent later in FY26.
However, global trade uncertainties, US tariffs, and geopolitical tensions may widen the deficit to 1.2 per cent of GDP in Q1 FY26.
A potential Strait of Hormuz disruption could push the CAD beyond 1.5 per cent later in FY26.
