SME Times News Bureau | 23 Mar, 2018
Ratings agency ICRA on Thursday said that it expects India's current
account deficit (CAD) to widen to $10-12 billion in Q4 FY2018 from the
low $3.4 billion in Q4 FY2017.
The CAD is expected to widen due
to an increase in the merchandise trade deficit, even as the services
trade surplus is expected to improve, it said.
"As a result, we
expect the current account deficit to rise to $46-48 billion in FY2018
(1.8 per cent of GDP) from $15.2 billion in FY2017 (0.7 per cent of
GDP)," the agency said.
"ICRA expects merchandise exports and
imports to expand by 8-10 per cent in FY2019 to S$335-340 billion and
$505-510 billion, respectively, resulting in a widening of the
merchandise trade deficit to $170-175 billion in FY2019, unless
commodity prices recede significantly."