India's CAD seen at 1.8% of GDP in FY27
Good news for India's economy: the country's current account deficit (CAD) is now expected to narrow to 1.8% of GDP in FY27, a bit better than earlier predictions.
This improvement comes thanks to strong earnings from services exports, remittances sent home by Indians abroad, and a dip in gold imports, even though the trade deficit grew last year.
India FY26 services $217B, remittances $144B
Services exports jumped 15% to $217 billion, and remittances rose 16% to $144 billion in FY26, really boosting invisible receipts.
On the flip side, the goods deficit rose from $287 billion in FY25 to $337 billion in FY26. It could hit $401 billion in FY27.
To help balance things out, India is making it easier for foreign investors to buy government bonds and expects up to $80 billion in capital inflows, which should help keep the rupee steady.