Mumbai, Aug 27 (IANS) Lending major State Bank of India (SBI) on Monday said that it expects the Current Account Deficit (CAD) to reach 2.8 per cent of GDP in FY19.
According to SBI Ecowrap report, rising oil price and lukewarm export growth is expected to push CAD higher.
The current account is the net difference between inflows and outflows of foreign currencies.
As per the report, even merchandise trade imbalance is likely to increase to $188 billion as against $160 billion in FY18.
“Rising oil price has already had an impact on our external balance in the last fiscal and is likely to have a further deteriorating effect on India’s current account balance this year too,” the report said.