India's current account deficit may dip to 4.5 percent: ICRA

India's current account deficit, which was around 5 percent of the country's gross domestic product (GDP) last fiscal, is expected to decline to 4.5 percent this fiscal, rating agency ICRA said Tuesday.

"This is based on the expectation that incentives announced by the government of India would provide a limited boost to non-oil, non-jewellery merchandise exports and lower crude oil prices would dampen growth of oil imports," ICRA said in a release here.

The size and funding of the current account deficit in FY14, however, was likely to remain a key concern for the Reserve Bank of India as macroeconomic and political uncertainties might result in sporadic portfolio outflows and foreign direct investment inflows might not record a broad-based pickup, it said.