New Delhi, April 12 -- India's current account deficit (CAD) could widen to around 2 per cent of GDP in the event of a prolonged West Asia crisis, driven by a rising import bill and weakening external inflows, according to a report by Crisil.

The report noted that under an adverse scenario, higher crude oil prices, rising gas costs, and increased fertiliser imports could significantly expand the trade deficit. A 23 per cent year-on-year rise in crude prices alone is expected to sharply increase the petroleum import bill, which already constitutes a substantial share of total imports.

"Higher petroleum import bill due to a 23 per cent year-on-year rise in crude prices, along with higher fertiliser prices, will further increase the import...