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India’s Current Account Deficit Widens Marginally in April-June
India’s current account tracks how much money comes into and leaves the country through trade and other transactions.
In the April-to-June quarter, India spent slightly more abroad than it earned.
The gap was $4.2 billion, equal to 0.5% of the economy.
This was larger than the $3.4 billion gap recorded a year earlier.
India’s goods trade deficit also grew to $86.1 billion.
Higher commodity prices and increased imports contributed to the wider gap.
Money sent home by Indians working abroad rose to $42.9 billion and helped reduce the pressure.
The overall balance of payments nevertheless showed an $8.1 billion deficit.
India’s current account deficit rose to $4.2 billion, or 0.5% of GDP, in April-June 2026-27.
The deficit was $3.4 billion, or 0.4% of GDP, in the same quarter a year earlier.
The merchandise trade deficit reached $86.1 billion, up from $68.9 billion a year earlier, according to the RBI’s figures.
Private transfer receipts, largely remittances, increased to $42.9 billion from $33.2 billion.
The balance of payments recorded an $8.1 billion deficit, compared with a $4.5 billion surplus a year earlier.
- Who
- India, according to data from the Reserve Bank of India.
- What
- The current account deficit widened to $4.2 billion, or 0.5% of GDP.
- Where
- India’s external accounts and transactions with the rest of the world.
- When
- April-June 2026-27, the first quarter of the fiscal year.
- Why
- Higher commodity prices and a wider merchandise trade deficit put pressure on the current account.
Key facts
- Current account deficit
- $4.2 billion, or 0.5% of GDP
- Year-earlier deficit
- $3.4 billion, or 0.4% of GDP
- Previous-quarter balance
- A $6.5 billion current account surplus
- Merchandise trade deficit
- $86.1 billion, compared with $68.9 billion a year earlier
- Private transfer receipts
- $42.9 billion, up from $33.2 billion
- Balance of payments
- An $8.1 billion deficit, compared with a $4.5 billion surplus a year earlier
- Reported discrepancy
- One report described the merchandise trade deficit as narrowing, although the reported figures show an increase from $68.9 billion to $86.1 billion.
Sources
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