New Delhi, Sep 10 (TIWN) As economists have predicted that India's current account deficit (CAD) is likely to reach the level of 3 per cent of the GDP in the current financial year Experts though feel that it would be a tough task as current account deficit may further go up to more than 3 per cent of the GDP in the current financial year.

Government, on its part, feels that with prices of global commodities like crude oil, fertilisers and gold among others falling, the current account deficit will gradually cool down.

Official sources say that the aforementioned commodities consume a significant part of foreign exchange and as their prices are showing a downward trend, its positive impact on current account deficit will reflect in the near future.

Experts, however, differ completely from this estimation, as Sher Mehta, economist and Director of Research at Virtuoso Economics, feels that current account deficit is likely to worsen in the coming days.

"In my estimation, the current account deficit will probably worsen to 3.4-3.5 per cent of GDP and is likely to reverse only from the second half of 2023. Given the prospects of a rapidly weakening global economic environment, exports are likely to fare worse over the coming 9-12 months and most of the worsening of the current account deficit
will be due to a widening trade deficit," he said.

The country's monthly trade deficit for goods has been rising and in July, it had gone past $31 billion. As imports continue to rise and exports hitting a plateau, the current account deficit is expected to rise, said an industry and trade watcher.