OFF BEAT

Will recent surge in crude oil price impact India’s current account deficit in the near term?

The surge in crude oil prices on the back of top Iranian killed by US airstrike poses a threat to India’s current account deficit (CAD), said Singapore-based DBS in a note. However, Indian experts are of the view that impact on current account deficit is unlikely to be a challenge for now. There would be some pressure on CAD if the price surge persists for a longer duration.

“We are hugely dependent on crude and gold imports and both commodities have recently gone up due to the geopolitical issues in the middle east. There is a risk that if the prices continue to stay at a higher level, there would be pressure on CAD.

Source
Financial Express
Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close