India's current account deficit (CAD) for the current financial year will likely to be 4.3 per cent of the country's gross domestic product (GDP), according to Barclays' projection.

Barclays Capital economists Siddhartha Sanyal and Rahul Bajoria said in a research note that CAD will remain higher than the previous year's level as risks biased towards a wider deficit.

In the research note, the economist wrote, "Recent trends in trade flows and the balance of payments suggest that the current account deficit for FY 2012-13 is likely to remain above the previous year's 4.2 percent of GDP."

The CAD will remain higher despite the fact that the country's trade deficit slipped to 10-month low of US$14.9 billion in February on increased exports and decreased imports. The report said that the CAD would remain higher even with the lower trade gap in February.

In the second quarter of current financial year, the country's CAD jumped to an all-time high of 5.4 per cent of the GDP.

Releasing the latest figures, the Reserve Bank of India (RBI) said that the increase in CAD to GDP ratio was partially because of slower growth in GDP and depreciation in the value of rupee.

The central bank has expressed concerns over high CAD and said that it would threaten macroeconomic stability and impact economic growth.