India's balance of payments outlook faces risks from West Asia crisis

India's external sector outlook remains broadly manageable but faces rising risks from geopolitical developments in West Asia that could push up crude oil prices and widen the current account deficit (CAD), according to a recent research note by Yes Bank. The report noted that India recorded a Balance of Payments (BoP) deficit of USD 24.4 billion in Q3 FY26, wider than the USD 10.9 billion deficit in the previous quarter, largely due to capital account outflows.