The January-March quarter recorded a current account deficit of $13 billion or 1.9 per cent of GDP compared to 0.4 per cent in the same quarter of last year.
The rise in current account deficit - which is the excess of country's imports of goods and services over its exports- can be attributed to a spike in the crude oil prices which forms a major portion of India's imports.
Goldman Sachs had, in its report, flagged higher crude oil prices as a risk to the CAD.
"Our commodities team expects oil prices to continue to rise over the course of this summer, before moderating slightly at the end of the year. We recently increased our 2018-19 current account deficit (CAD)forecast to 2.4 per cent of GDP (from 2.1 per cent of GDP earlier)," Goldman Sachs said in a research note.
The rise in current account deficit - which is the excess of country's imports of goods and services over its exports- can be attributed to a spike in the crude oil prices which forms a major portion of India's imports.
Goldman Sachs had, in its report, flagged higher crude oil prices as a risk to the CAD.
"Our commodities team expects oil prices to continue to rise over the course of this summer, before moderating slightly at the end of the year. We recently increased our 2018-19 current account deficit (CAD)forecast to 2.4 per cent of GDP (from 2.1 per cent of GDP earlier)," Goldman Sachs said in a research note.