India’s current account deficit moderated to $12.3 billion, or 1.3% of GDP in the second quarter of FY26, on the back of a lower merchandise trade deficit, the Reserve Bank of India said on Monday.
In the preceding quarter, the current account had recorded a deficit of $2.4 billion of 0.2% of GDP.
Net services receipts increased to $50.9 billion in Q2:2025-26 from $ 44.5 billion a year ago.
India’s merchandise trade deficit narrowed to $87.4 billion from $88.5 billion a year earlier, the RBI said.
Private transfer receipts, which are mainly remittances by Indians employed overseas, increased to $38.2 billion in the quarter from an upwardly revised $34.4 billion a year earlier.
India’s balance of payments recorded a deficit of $10.9 billion, compared with a surplus of $18.6 billion a year earlier.
