India’s Current Account Deficit Widens to $4.2 Billion in Q1 2026–27

The Reserve Bank of India said the current-account deficit widened to US$4.2 billion, or 0.5% of GDP, in April–June 2026 from US$3.4 billion and 0.4% a year earlier. The merchandise trade deficit rose to US$86.1 billion, while net services receipts increased to US$51.6 billion and personal transfer receipts reached US$42.9 billion. Net foreign direct investment was US$6.1 billion, but foreign portfolio investment recorded a US$9.6 billion net outflow after a US$1.6 billion inflow a year earlier. Foreign-exchange reserves fell US$8.1 billion on a balance-of-payments basis; the RBI said the figures are preliminary.