New Delhi, Oct. 18 -- The domestic current account deficit (CAD) is expected to remain largely in check at around 1.2-1.5 per cent of the GDP in FY26, according to a report by Bank of Baroda.

However, the report highlighted that progress on the ongoing US-India trade talks will be a crucial factor to monitor going forward.

It stated "the US is a major destination for India's electronic exports, and the sector is currently exempted from the higher US tariffs... Progress on US-India trade talks will be a crucial factor to monitor going forward."

The report pointed out that India's trade deficit is tracking higher so far in FYTD26 compared with the same period last year.

Although exports have risen over the previous year, import growth c...