India’s current account deficit is expected to rise from 0.6% to 1.2% of GDP by FY26, influenced by trade conditions and global commodity prices. The oil trade deficit increased significantly in July 2025, reaching $27.35 billion.
India’s current account deficit is projected to nearly double in the financial year 2025-26, increasing from 0.6 per cent to 1.2 per cent of GDP FY25, according to a report by Union Bank of India.
The estimate has an upward risk due to changing trade conditions and fluctuations in global commodity prices.
“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,” news agency ANI quoted the report.
