New Delhi, June 10 -- India is expected to see a current account deficit of 1.8 per cent of GDP in FY27 as against around 2 per cent projected earlier. This adjustment follows a stable outturn in the external sector during the preceding fiscal year despite a widening trade deficit.

According to the ICICI Bank Global Market report, the primary drivers for this revision include resilient invisible receipts and anticipated adjustments in trade components. The report noted that these projections include a reduction in gold imports to USD 55 billion from USD 72 billion last year.

The report outlined a sharp contrast between merchandise trade and invisible earnings. In FY26, the current account deficit remained steady at USD 25 billion, which...