The Reserve Bank of India said that the current account deficit of the country is increasing due to high cost of oil and petroleum products. The country is dependent on oil import to satisfy its domestic needs.

It imports about 70 per cent of its oil requirements which cause a big burden on the economy of the country. The international crude prices are jumped to $140/ barrel after softening in prices for some times.

Indian oil companies are under much pressure to increase in global crude prices. They require almost 250 million dollars every day to purchase oil and adjusting their balance sheets. 

The apex bank said in a statement that oil import is increasing day by day and it has grown by 50.4 percent in the first quarter ended June. Foreign direct Investment in India is also decreased following slowdown in the US economy. It is also a major cause of trade deficit of India.