“In a telling reminder of this fact, a record increase in oil prices and high gold imports took the current account deficit above this Plimsoll line and to historically high levels during 2011-13,” Patra said at an event in Bhubaneshwar celebrating 75 years of India’s independence.
Over the last few months, India has faced upward pressure on its trade deficit sparked by a sharp rise in international commodity prices due to supply-side disruptions following Russia’s invasion of Ukraine.
The domestic trade deficit widened to a record high $31 billion in July. India is the world’s third largest importer of crude oil.
Several economists, including those from Bank of America, expect India’s CAD to rise to around 3 per cent of GDP in the current financial year, sharply higher than 1.2 per cent in the previous fiscal year.
Providing a projection for India’s future growth, Patra said that according to calculations by the Organization for…