INDIA'S CURRENT ACCOUNT DEFICIT WIDENS TO $4.2 BILLION IN Q1 AS THE TRADE GAP INCREASES

India’s current account deficit has widened to $4.2 billion, or 0.5% of GDP, in the first quarter of FY 2026–27, compared with $3.4 billion in the same period last year. The main reason for this increase is the widening merchandise trade deficit, which rose from $68.9 billion to $86.1 billion, as we saw a faster growth in imports than exports. Higher energy and commodity prices also added to import costs. This impact was partly balanced by better earnings from higher sums from the Indians that are working abroad. Despite the widening deficit, RBI says India’s external position remains manageable.