New Delhi, July 18 -- India's current account deficit (CAD) is likely to see a marginal rise in FY26 as there is minor upward risk on it, noted a report by Union Bank of India.

However, the UBI report maintained its earlier forecast of a widening CAD to 1.2 per cent of GDP in FY26, compared to an estimated 0.9 per cent in FY25. The report also mentioned that there are downside risks to the FY25 estimate.

It stated, "We see a marginal upward risk to our estimate for current account (C/A) deficit for FY26 GDP."

The report noted that the increase in global commodity prices, especially oil and metals, could put upward pressure on the trade deficit. If the current trend in rising commodity prices continues, it may impact India's trade dynam...