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Current account deficit seen widening
Union Bank projects a wider current account deficit for FY26 due to tariff pressures and higher imports, while maintaining overall external stability.
India’s current account deficit is expected to rise to one point seven percent of GDP in FY26, according to a report by Union Bank of India. The projection reflects higher import costs and potential tariff related pressures on trade flows. Economists highlighted that a moderate deficit remains manageable, though sustained global protectionism and energy price volatility could influence external sector stability over the coming quarters.