Question
As per Morgan Stanley’s projections in April 2026,
what is India’s Current Account Deficit (CAD) expected to be as a percentage of GDP in FY27?Solution
According to Morgan Stanley’s projections in April 2026, due to higher oil prices, India’s Current Account Deficit (CAD) is expected to widen by around 150 basis points to nearly 2.5% of GDP in FY27 compared to nearly 1% in the previous financial year. The firm also projected CPI inflation to average at 5.1% Year-on-Year in FY27, and the fiscal deficit is projected at around 4.3% of GDP.
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