Rising oil demand after Y2K did not materially worsen the current account situation because it was offset by IT services exports and India-bound remittances.

India's Current Account Deficit (CAD) may narrow to 1.6 per cent of GDP in FY27 as lower oil prices and improving exports support the external sector

Crisil warns that rising Brent crude prices could elevate India's current account deficit to 2.2% of GDP by fiscal 2026.