‘Manageable’: India’s CAD seen at 1% of GDP in FY25 despite US tariffs; Crisil flags sharp fall in August imports

Despite facing pressures from US tariffs and global uncertainties, India’s current account deficit is projected to remain manageable at around 1% of GDP this fiscal year. This is attributed to resilient services exports, steady remittances, softer crude oil prices, and an improving trade balance. Encouragingly, merchandise exports grew in August, while imports fell sharply, further supporting the manageable deficit.