In the wake of the conflict in Ukraine continues to keep global prices of commodities, including crude oil, high, the current account deficit (CAD) of net commodity importers including India, is likely to remain under stress, the commerce ministry said on Wednesday.

Responding to a query in the Lok Sabha, Minister of State of Ministry of Commerce and Industry Som Prakash said, "The current account in the Balance of Payments changed from a surplus of 0.9 percent of GDP in 2020-21 (April-March) to a deficit of 1.2 percent of GDP in 2021-22 on the back of rising economic activity in India as the nation completed its economic recovery from the pandemic induced contraction of GDP."

 "The current account deficit was also a result of rising global commodity prices caused by disruption in supply chains the world over, initially triggered by lockdowns imposed to fight the pandemic and subsequently by the Russia-Ukraine conflict." he said.

The current account balance for the financial year 2021-22 recorded a deficit of USD 38.7 bln or 1.2 percent of GDP as against a surplus of USD 24 bln or 0.9 percent a year ago, as the trade deficit widened to USD 189.5 bln from USD 102.2 bilion a year ago. In January-March, the country's current account deficit narrowed to USD 13.4 bln from USD 22.2 bln a quarter ago. The minister further said the government has raised the duty on gold imports from 10.75 percent to 15 percent to curb the increase in the deficit.

IMF cuts India’s 2022 growth forecast to 7.4 pc

India on track to become USD30 trillion economy in 30 years: Goyal

India’s domestic demand to play greater role in growth momentum