New Delhi, Nov. 19 -- India's current account deficit (CAD) is expected to rise to 1.7% of GDP in FY26, according to a report by Union Bank of India, which cited persistent tariff pressure as the primary reason.

The latest CAD projection is higher than the bank's earlier estimate of 1.2% of GDP, as global trade tariff pressures have kept the trade deficit elevated despite weak demand and lower commodity prices.

"We expect a rise in current account deficit to 1.7 per cent of GDP in FY26, as global trade tariff pressures continue to keep the trade deficit elevated," said the report, as seen by ANI.

A current account deficit (CAD) occurs when a country's total imports of goods, services, and capital exceed its total exports and income fro...