New Delhi, Oct. 16 -- India's Balance of Payments (BoP) is turning positive, but it is likely to remain lower than earlier expectations as elevated oil prices and an expanding non-oil, non-gold deficit weigh on the external trade position, according to a research report by ICICI Bank Global Markets.

"This year trade deficit is bound to go up given elevated oil prices which have averaged USD 92/bbl. along with the fact that non-oil-non-gold deficit is rising. Assuming oil prices average ~USD 95/bbl., goods deficit is estimated at USD 388bn, which implies a current account deficit of USD 57bn or 1.4% of GDP," the report said.

The report further pointed out that, "higher banking capital inflows and improvement in FDI is positive, but outfl...