India, May 18 -- A falling rupee, outbound portfolio investment and sluggish foreign direct investment are flashing amber on India's external accounts dashboard. If the ongoing oil shock persists and the trade deficit widens further, the pressure will intensify. While recent debate has focused on FDI, portfolio flows and exchange rate, a long-term look at India's trade deficit is equally important to understand the problem.

Published by HT Digital Content Services with permission from Hindustan Times....