According to the monthly economic review published by the Finance Ministry, India’s current account deficit is predicted to worsen during the current fiscal year as a result of more expensive imports and weaker merchandise exports.

As long as crude oil and edibles, which have driven inflation in India, remain significant imported components in the economy, global headwinds will continue to pose a downside risk to growth, according to the review published on Thursday by the ministry.

For the time being, it stated: “Because of concerns about a recession, their prices have somewhat dipped globally. As a result, inflationary pressures in India would be reduced.”