India’s current account deficit (CAD) widened to $4.2 billion, or 0.5% of GDP, in the first quarter of 2026-27, from $3.4 billion, or 0.4% of GDP, in the year-ago period, as a wider merchandise trade deficit more than offset stronger services receipts and higher transfers, according to preliminary balance of payments data released by the Reserve Bank of India (RBI).
The merchandise trade deficit widened to $86.1 billion in April-June 2026 from $68.9 billion a year earlier. Merchandise exports rose to $132 billion from $112.7 billion, while imports increased to $218 billion from $181.6 billion during the period.
