Public TV EnglishPublic TV EnglishPublic TV English
  • Latest
  • States
    • Karnataka
      • Bengaluru
    • Andhra Pradesh
    • Kerala
    • Tamilnadu
    • Telangana
  • National
  • Politics
  • Entertainment
    • Bollywood
    • Hollywood
    • Sandalwood
    • Film
    • TV Shows
  • Lifestyle
  • Food
    • Veg
    • Non Veg
  • Technology
  • Fashion
  • World
Reading: Amid tariff tensions, India’s current account deficit may double to 1.2 pc of GDP in FY26, says UBI
Notification Show More
Font ResizerAa
Public TV EnglishPublic TV English
Font ResizerAa
  • Latest
  • States
  • National
  • Politics
  • Entertainment
  • Lifestyle
  • Food
  • Technology
  • Fashion
  • World
Search
  • Latest
  • States
    • Karnataka
    • Andhra Pradesh
    • Kerala
    • Tamilnadu
    • Telangana
  • National
  • Politics
  • Entertainment
    • Bollywood
    • Hollywood
    • Sandalwood
    • Film
    • TV Shows
  • Lifestyle
  • Food
    • Veg
    • Non Veg
  • Technology
  • Fashion
  • World
Follow US
Business

Amid tariff tensions, India’s current account deficit may double to 1.2 pc of GDP in FY26, says UBI

Public TV English
Last updated: September 3, 2025 11:34 am
By Public TV English
Share
3 Min Read

NEW DELHI: India’s current account deficit (CAD) is expected to almost double in the current financial year FY26 to 1.2 per cent of gross domestic product (GDP), compared to 0.6 per cent in FY25, amid rising trade and geopolitical tensions, according to a report by Union Bank of India.

The report pointed out that India’s merchandise trade deficit widened sharply in July 2025 to $27.35 billion, compared with $18.7 billion in June. This sharp increase signals that the current account deficit may widen further in the second quarter of FY26. It stated, “CAD may almost double to 1.2 per cent of GDP amid trade & geopolitical tensions”.

A key factor weighing on the outlook is the recent tariff hike. From August 27, tariffs were raised by 50 per cent, which is expected to disrupt exports in several sectors, including textiles, gems and jewellery, auto components, chemicals, and shrimps. The report noted that the full impact of these disruptions will need close monitoring in the coming months.

At the same time, global commodity prices will play an important role in shaping India’s external balance. Oil and metals in particular remain under close watch. The report highlighted that India’s current account balance is highly sensitive to oil prices. Every $10 per barrel move in crude oil prices impacts the annual current account balance by nearly $15 billion.

More Read

President Murmu visits Sri Ranganathaswamy temple in Tamil Nadu’s Srirangam
Creation of GBA leads to turf war between BJP and Congress

Geopolitical risks, especially tariff concerns, will continue to influence India’s trade dynamics. Any trade deals signed by India with the US or Europe could also play a significant role in easing or worsening the external balance situation.

The report, however, also highlighted some positive factors. Lower oil prices, if sustained, could significantly support the current account dynamics. Moreover, services exports and remittances have so far shown resilience. If they continue to hold their momentum, India may see a positive surprise in its external position despite global trade tensions.

The report also cautioned that persistent trade tensions could pose a downside risk to domestic growth. Overall, the Union Bank of India report paints a cautious outlook, pointing to both risks and potential supports for India’s current account in the current financial year. (ANI)

You Might Also Like

Man burnt alive in accidental fire at home in Mysuru

SIT issues notices to accused in Sowjanya murder case, gets 3 more days custody of Chinnaiah

Married woman accuses policeman, brother of sexually assaulting her for 7 years

Quarry worker crushed to death between rocks in Malur village, another injured

‘Hamas will have no place to hide’: Israeli reservists gear up for Gaza city offensive

Share This Article
Facebook Twitter Whatsapp Whatsapp Telegram
Previous Article Jhulan Goswami hails increase in prize money for Women’s World Cup, says ‘getting goosebumps’
Next Article Daniel Craig’s ‘Knives Out 3’ sets limited theatrical release ahead of Netflix premiere, details inside

Popular News

Police commissioner directs CCB to review Malayalam movie over depiction of Bengaluru women
Anirudh, Bharati meet CM Siddaramaiah over Vishnuvardhan memorial
Public TV EnglishPublic TV English