Country's current account deficit narrowed to $2.4 billion in June quarter, Reserve Bank of India released data

On Monday Reserve Bank of India (RBI) gave information that India's current account deficit (CAD) came to $2.4 billion in the June quarter. It stood at 0.2% of GDP, compared to $8.6 billion (0.9% of GDP) in the same period a year ago. This was helped by the export of services. 

India had recorded a CAD of $23.3 billion (0.6% of GDP) for 2024-25. This is less than $26 billion (0.7% of GDP) in 2023-24. The Reserve Bank said in a statement that India's current account balance recorded a deficit of $2.4 billion in the first quarter of 2025-26. At the same time, it was 8.6 billion in the first quarter of 2024-25, and there was a surplus of $13.5 billion (1.3% of GDP) in the fourth quarter of 2024-25.

During the quarter, the merchandise trade deficit stood at $68.5 billion. This is more than $63.8 billion in the April-June period of the previous year. Net service receipts rose to $47.9 billion during the quarter. It was $39.7 billion in the same quarter a year ago. It said that service exports increased on a year-on-year basis in major categories such as business services and computer services.

The financial statement said that foreign direct investment (FDI) recorded a net inflow of $5.7 billion during the quarter. At the same time, there was a net inflow of $6.2 billion in the same quarter a year ago.

During this period, foreign portfolio investment (FPI) recorded a net inflow of $1.6 billion in the first quarter of 2025-26. At the same time, a net inflow of $0.9 billion was recorded in the first quarter of 2024-25.