Apr 16 (BNP): India’s trade deficit could expand in the financial year 2026–27, driven by global economic uncertainty and potential volatility in crude oil prices, according to a recent report.
Rising geopolitical tensions and fluctuations in global demand are expected to put pressure on exports, while higher oil prices may increase the country’s import bill. As India remains heavily dependent on energy imports, any sustained rise in crude prices could significantly impact the trade balance.
The report also highlights that external risks, including shifting trade dynamics and currency movements, could add to the pressure on India’s overall trade performance.
While domestic demand is expected to remain stable, analysts caution that global headwinds may limit export growth, making it challenging to contain the widening gap between imports and exports.
Experts suggest that managing energy costs, diversifying export markets, and strengthening domestic manufacturing could help mitigate some of these risks in the coming year.
