Mumbai, September 1: India’s current account deficit for the April-June quarter of the fiscal year 2026-27 has reached $4.2 billion, equivalent to 0.5% of its GDP. This data was released by the Reserve Bank of India (RBI) on Tuesday.
These figures emerge at a time when the economy is grappling with high prices for crude oil, LPG, and fertilizers due to conflicts in the Middle East.
In the same quarter last year, the current account deficit was 0.4% of GDP.
The trade deficit for goods in the first quarter of 2026-27 was $86.1 billion, slightly lower than the $88.9 billion recorded in the first quarter of 2025-26, primarily due to increased import costs.
According to the RBI, net income from services rose to $51.6 billion in the first quarter of 2026-27, up from $47.9 billion in the same period last year. This increase was driven by growth in service exports, particularly in computer services, other business services, and transportation services.
The net outflow in the primary income account, which reflects payments for investment income, decreased to $10.5 billion in the first quarter of the current fiscal year, down from $13.3 billion in the same quarter of 2025-26.
Under the secondary income account, personal transfer receipts, mainly from Indians working abroad, increased to $42.9 billion in the first quarter, compared to $33.2 billion in the previous year.
Net inflow of Foreign Direct Investment (FDI) recorded in the first quarter was $6.1 billion, up from $5.2 billion in the same quarter last year.
However, the stock market saw a net outflow of Foreign Portfolio Investment (FPI) amounting to $9.6 billion during the April-June quarter, contrasting with a net inflow of $1.6 billion in the same period of 2025-26.
During this quarter, net inflow from non-resident deposits was $2.8 billion, down from $3.6 billion in the same period last year.
Net inflow under External Commercial Borrowing (ECB) in the first quarter was $3.3 billion, compared to $4.4 billion in the corresponding period of the previous fiscal year.
The statement noted that there was a decrease of $8.1 billion in foreign exchange reserves based on the balance of payments, while there was an increase of $4.5 billion in the first quarter of 2025-26.
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