On the external financing front, the bank noted that the recent reversal in foreign portfolio investment (FPI) flows had bolstered the rupee outlook. (Image Source: Pixabay)
\n\nIndia's current account deficit (CAD) could expand to $57 billion, equivalent to 1.4 per cent of GDP, in FY27, as rising domestic consumption and elevated crude oil prices push up the country's import bill, even as merchandise exports maintain strong growth, according to an ICICI Bank report. The bank has projected India's goods trade deficit at $380 billion for the financial year, revising its earlier estimate of $388 billion. Relatively subdued gold imports are expected to provide some relief to the country's overall import expenditure.
\n\nThe latest assessment points to the growing pressure on India's external balances, with rising demand for imported goods and higher energy costs offsetting some of the gains from stronger export earnings.
\n\nIndia's merchandise exports have delivered a robust performance in the first part of FY27. However, the increase in outbound shipments has coincided with a significant rise in imports, limiting the improvement in the country's trade position.
\n\n"Goods exports have seen a stellar performance in the fiscal year so far (22 per cent YoY), but stronger domestic demand and…
Original source: https://www.timesnownews.com/business-economy
