New Delhi, June 17 -- India's Current Account Deficit (CAD) may narrow to 1.6 per cent of GDP in FY27 as lower oil prices and improving exports support the external sector, as per a report by ICICI Bank.

The report noted India's goods exports surged by 18 per cent YoY to a record-high of USD 45 billion, with both oil exports (55 per cent YoY), as well as non-oil exports (12 per cent YoY) contributing to the pick-up.

While oil exports sharply increased on a YoY basis at USD 8.4 billion as against USD 5.4 billion in May 2025, they fell sequentially by 12 per cent. At the same time, non-oil exports moved to a 24-month high of USD 36.8 billion, surging by ~12per cent YoY and 8.3per cent MoM.

Additionally, "Agri products (8.8% YoY) and gems...