The net services receipts increased to $47.9 bn from $39.7 bn a year ago

FPJ News Service mumbai

India’s current account deficit (CAD) narrowed to $2.4 billion (0.2% of GDP) in the April-June quarter of the current fiscal year (FY25-26) as compared with $8.6 billion (0.9% of GDP) in the same quarter of the previous year, and against a surplus of $13.5 billion (1.3% of GDP) in the fourth quarter of FY24-25, the Reserve Bank of India (RBI) said on Monday. Merchandise trade deficit, RBI said, stood at $68.5 billion in Q125-26 was higher than $63.8 billion in Q124-25.  

During the period under review, the net services receipts increased to $47.9 billion from $39.7 billion a year ago. Services exports have risen on a y/y basis in major categories such as business services and computer services. Net outgo on the primary income account, primarily reflecting payments of investment income, increased to $12.8 billion from $10.9 billion.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.2 billion from $28.6 billion. In the financial account, foreign direct investment recorded a net inflow of $5.7 billion as compared to a net inflow of $6.2 billion, a year ago. Foreign portfolio investment recorded a net inflow of $1.6 billion as compared to a net inflow of $0.9 billion.

Net inflows under external commercial borrowings to India amounted to $3.7 billion in Q1:2025-26, as compared to $1.6 billion in the corresponding period a year ago. Non-resident deposits recorded a lower net inflow of $3.6 billion than $4.0 billion in Q124-25. NRI deposits recorded a lower net inflow of USD 3.6 billion during the quarter under review as against USD 4 billion in Q1, 2024-25, it said.