The country's current account deficit (CAD) is likely to be 4.3 per cent of the gross domestic product (GDP), with "risks biased towards a wider deficit", Barclays said on Monday.
This is notwithstanding trade deficit falling to 10-month low of $14.9 billion in February on improving exports and a sharp drop in imports, it added.
"Even with the lower trade gap in February, country's trade deficit remains high and its external position remains a concern," Barclays Capital economists Rahul Bajoria and Siddhartha Sanyal said in a research note.
"Recent trends in trade flows and the balance of payments suggest that the CAD for FY 2012-13 is likely to remain above the previous year's 4.2 per cent of GDP," the report said.
The trade deficit in January widened to $20 billion, the second highest rise ever in a month. The biggest trade gap of $21 billion was recorded in October, 2012.
Meanwhile, the Reserve Bank of India (RBI) has also expressed concerns over high CAD and said that a high CAD will threaten macroeconomic stability and impact growth.
"Large fiscal deficits will accentuate the CAD risk, further crowd out private investment and stunt growth impulses," RBI had said in its third quarter monetary policy review.
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