New Delhi, May 19 -- India's current account deficit (CAD) is projected to rise to 2.2 per cent of gross domestic product (GDP) in the current fiscal from an estimated 0.8 per cent in fiscal 2026. This widening CAD stems primarily from escalating global oil prices and broader merchandise trade imbalances, according to a report by rating agency Crisil.

The report pointed to a direct connection between global commodity shifts and domestic macroeconomic indicators, noting that higher energy costs will inevitably test the country's external balance sheet.

"For the current fiscal, we project the current account deficit (CAD) to rise to 2.2% of gross domestic product (GDP) from an estimated 0.8% in fiscal 2026. Higher oil prices (we have revi...