The surge in commodity prices brought about by the war in Ukraine will lead to a deterioration in India’s external position, with the current account deficit widening to almost 4% of GDP this year. While not as large as it was during the previous period of high commodity prices in 2013, a deficit of that size would still leave the rupee vulnerable if risk sentiment deteriorated.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.