With the rupee hovering around 90, India is bracing for a potential current account deficit (CAD) stress test, recalling the 2013 episode when the currency fell nearly 29% in six months. Back then, India was tagged a “Fragile Five” economy. The key question now is whether stronger buffers and fundamentals can prevent a repeat during fresh depreciation pressure.
India’s current account deficit is set to widen as expensive oil imports strain foreign exchange inflows, with the Iran conflict adding further pressure. Economists warn RBI steps may only deliver short-lived support to the rupee. If the oil cost shock persists, the deficit could expand enough to push India into a balance of payments shortfall for a second straight year.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
