The Reserve Bank of India (RBI) in its latest data has showed that India's current account deficit (CAD) widened to $4.2 billion, or 0.5 per cent of Gross Domestic Product (GDP), in the first quarter of the current fiscal year (Q1FY27) from $3.4 billion, or 0.4 per cent of GDP, in the corresponding quarter of the previous year.
Merchandise trade deficit stood at $86.1 billion in the April-June period of 2026-27 was higher than $68.9 billion in the first quarter of 2025-26. Net services receipts increased to $51.6 billion in Q1 2026-27 from $47.9 billion a year ago. Services exports have risen on a year-on-year basis in major categories such as computer services, other business services and transportation services.
The data also showed that personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $42.9 billion in Q1 2026-27 from $33.2 billion in Q1 2025-26. Further, foreign direct investment (FDI) recorded a net inflow of $6.1 billion in the first quarter, higher than $5.2 billion in the comparable period of the last financial year.
