Government Considering Steps to Contain Widening Current Account Deficit; Minister Goyal Rules Out Import Cuts for Now
The Indian government is considering several steps to contain the widening Current Account Deficit (CAD). Commerce and Industry Minister Goyal has clarified that there are no plans to cut non-essential imports at this time. The government's approach signals a cautious and measured policy stance on managing the external account balance.
World Bank Projects India's Current Account Deficit to Rise to 1.8% of GDP by FY27
The World Bank has forecasted India's current account deficit to rise to 1.8% of GDP by FY27, primarily due to increasing energy import costs. This projection highlights India's vulnerability to global energy price fluctuations and raises concerns about the country's external sector balance and foreign exchange management in the medium term.
08Apr 26
RBI Governor Expects Strong Service Exports and Remittances to Keep Current Account Deficit Moderate in FY26
The RBI Governor has expressed confidence that India's current account deficit will remain moderate in FY26, supported by strong service exports and steady inward remittances. This assessment reflects optimism about the country's external sector fundamentals and the sustainability of key foreign exchange earning components.