India's current account deficit expected to widen to 2.8% of GDP - Nomura

Add capIndia's current account deficit expected to widen to 2.8% of GDP - Nomuration

India's current account deficit expected to widen to 2.8% of GDP - Nomura

According to the Nomura latest report, India's current account deficit (CAD) is expected to widen to 2.8 per cent of the GDP in this financial year.

Cause for this are rising oil prices, depreciating rupee and outflow of portfolio investments.

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Further balance of payment (BOP) funding to remain a challenge in FY19 as the basic BOP (current account + net FDI) is negative and portfolio flows also said remain negative.

CAD jumped to USD 48.7 billion, or 1.9 per cent of GDP, in 2017-18 fiscal. This was higher than USD 14.4 billion, or 0.6 per cent, CAD in 2016-17 fiscal.

India's exports rose by 14.32 per cent to USD 25.77 billion in July, while imports during the month were valued at USD 43.79 billion.