India’s current account deficit (CAD) narrowed sharply to $2.4 billion, or 0.2% of GDP, in the June quarter of 2025-26, from $8.6 billion (0.9% of GDP) in the same period last year, the Reserve Bank of India (RBI) said on Monday.
The improvement was aided by robust services exports , even as the merchandise trade gap widened. For the full year 2024-25, CAD stood at $23.3 billion (0.6% of GDP), lower than $26 billion (0.7% of GDP) in 2023-24, RBI data showed as reported PTI.
“India’s current account balance recorded a deficit of $2.4 billion (0.2% of GDP) in Q1:2025-26 as compared with $8.6 billion (0.9% of GDP) in Q1:2024-25 and against a surplus of $13.5 billion (1.3% of GDP) in Q4:2024-25,” the central bank said in its statement.
During the April–June quarter, the merchandise trade deficit widened to $68.5 billion from $63.8 billion a year earlier. However, net services receipts climbed to $47.9 billion from $39.7 billion, buoyed by higher exports in categories such as business services and computer services.
On the financial account, foreign direct investment (FDI) saw a net inflow of $5.7 billion, marginally lower than the $6.2 billion recorded a year ago. Foreign portfolio investment (FPI), however, rose to a net inflow of $1.6 billion in Q1:2025-26, compared with $0.9 billion in the year-ago period, RBI added.
The improvement was aided by robust services exports , even as the merchandise trade gap widened. For the full year 2024-25, CAD stood at $23.3 billion (0.6% of GDP), lower than $26 billion (0.7% of GDP) in 2023-24, RBI data showed as reported PTI.
“India’s current account balance recorded a deficit of $2.4 billion (0.2% of GDP) in Q1:2025-26 as compared with $8.6 billion (0.9% of GDP) in Q1:2024-25 and against a surplus of $13.5 billion (1.3% of GDP) in Q4:2024-25,” the central bank said in its statement.
During the April–June quarter, the merchandise trade deficit widened to $68.5 billion from $63.8 billion a year earlier. However, net services receipts climbed to $47.9 billion from $39.7 billion, buoyed by higher exports in categories such as business services and computer services.
On the financial account, foreign direct investment (FDI) saw a net inflow of $5.7 billion, marginally lower than the $6.2 billion recorded a year ago. Foreign portfolio investment (FPI), however, rose to a net inflow of $1.6 billion in Q1:2025-26, compared with $0.9 billion in the year-ago period, RBI added.
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