India CAD at 0.2% of GDP in Q1: RBI Data

Mumbai, Sep 1 (PTI) India's current account deficit (CAD) narrowed to USD 2.4 billion, or 0.2 per cent of GDP, in the June quarter from USD 8.6 billion (0.9 per cent of GDP) in the year-ago period, helped by exports of services, according to RBI data released on Monday.

India recorded a current account deficit (CAD) of USD 23.3 billion (0.6 per cent of GDP) for 2024-25, down from USD 26 billion (0.7 per cent of GDP) in 2023-24.

"India's current account balance recorded a deficit of USD 2.4 billion (0.2 per cent of GDP) in Q1:2025-26 as compared with USD 8.6 billion (0.9 per cent of GDP) in Q1:2024-25 and against a surplus of USD 13.5 billion (1.3 per cent of GDP) in Q4:2024-25," RBI said in a statement.

During the quarter, merchandise trade deficit was at USD 68.5 billion higher than USD 63.8 billion in the April-June period of previous year.

Net services receipts increased to USD 47.9 billion in quarter from USD 39.7 billion a year ago, it said.

Services exports have risen on a y-o-y basis in major categories such as business services and computer services, it added.

In the financial account, it said, foreign direct investment (FDI) recorded a net inflow of USD 5.7 billion during the quarter as compared to a net inflow of USD 6.2 billion a year ago.

During the period, foreign portfolio investment (FPI) recorded a net inflow of USD 1.6 billion in Q1:2025-26 as compared to a net inflow of USD 0.9 billion in Q1:2024-25.