West Asia Conflict Pushes India’s Q1 Current Account Deficit Higher

India’s current account measures how much money enters and leaves the country from trade and other international payments.

In the first three months of fiscal year 2026-27, India spent more abroad than it earned.

The gap was USD 4.2 billion, or 0.5% of the country’s economy.

A larger goods trade gap was the main reason for the increase.

The goods deficit rose to USD 86.1 billion.

The Reserve Bank of India linked the wider deficit to the West Asia conflict.

India earned more from services such as computer and business services.

Money sent home by Indians working overseas also increased.

However, foreign portfolio investors took more money out of India than they invested.