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flag India’s current account deficit is projected at 1% of GDP in 2026, down from 2.2% in 2025, driven by lower oil prices and strong remittances.

flag India’s current account deficit is projected to average 1% of GDP in fiscal 2026, up from 0.6% in 2025, but remain manageable due to lower crude oil prices, a services trade surplus, and strong remittance inflows. flag The CAD narrowed to 1.3% of GDP in the second quarter of 2026, down from 2.2% the prior year, as oil prices are expected to average $60–65 per barrel. flag The government aims to reduce its fiscal deficit to 4.4% of GDP in 2026, with planned borrowing of ₹14.7 lakh crore, though the deficit reached 52.6% of the annual target by October amid lower tax revenues and higher capital spending. flag Crisil attributes ongoing macroeconomic stability to supportive external conditions and cautious fiscal management.

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