What is in store for Indian economy? Take a sneak peek here
With this, the agency expects the current account deficit to rise to USD 46-48 billion, or 1.8 per cent of GDP, in financial year 2017-18, from USD 15.2 billion, or 0.7 per cent of GDP in financial year 2016-17. According to Icra, the merchandise exports and imports are likely to expand by 8-10 per cent in FY19 to USD 335-340 billion and USD 505-510 billion, respectively, resulting in a widening of the merchandise trade deficit to USD 170-175 billion, unless commodity prices recede significantly.
The country's current account deficit (CAD) is likely to treble to USD 10-12 billion in the fourth quarter of the current financial year, against the same year-ago period, due to higher trade deficit, says a report. Image source: Pixabay