A recent report predicts that India’s current account deficit (CAD) will remain manageable in the fiscal year 2025, supported by stable economic growth and favorable trade dynamics. Economists highlight that lower commodity prices and robust service exports are key factors expected to help keep the CAD under control.
The report notes that while challenges such as global economic uncertainty and fluctuating oil prices persist, India’s diversified export base and strong remittance inflows provide a cushion against external shocks. Additionally, prudent fiscal policies and efforts to reduce dependency on imports are likely to contribute to a balanced external account.
Experts emphasize that a manageable CAD level will strengthen investor confidence and support the country’s macroeconomic stability. As India continues its growth trajectory, maintaining a sustainable current account position will be crucial for long-term economic resilience.