New Delhi, July 17 -- India's current account deficit is expected to widen to 1.5 per cent of gross domestic product (GDP) in fiscal 2026-27 from 0.6 per cent in the previous fiscal, as higher crude oil and commodity prices weigh on the country's external balance, according to Crisil's Trade First Cut report for July 2026.

"We expect the current account deficit (CAD) to widen to 1.5% of gross domestic product (GDP) in fiscal 2027 vs 0.6% in fiscal 2026," Crisil said in the report.

The ratings and analytics firm identified oil as the main factor driving India's merchandise trade deficit. "Oil remains the main driver of the goods trade deficit. Higher on-year crude oil and commodity prices will weigh on the CAD," it said.

Crisil expects ...