Mumbai, Sep 1 (IANS) India’s current account deficit (CAD) stood at $4.2 billion in the April-June quarter (Q1) of the current financial year, holding steady at 0.5 per cent of GDP despite the rising prices of oil, LPG, and fertilisers in the global market due to the West Asia crisis, according to data released by the RBI on Tuesday.
The CAD in the same quarter of the previous financial year was estimated at 0.4 per cent of GDP.
The merchandise trade deficit, at $86.1 billion in Q1:2026-27, was higher than $68.9 billion in Q1 of 2025-26 due to the higher cost of imports.
Net services receipts increased to $51.6 billion in Q1 of 2026-27 from $47.9 billion in the first quarter of the previous financial year as services exports have risen on a year-on-year basis in major categories such as computer services, other business services and transportation services, according to the RBI statement.
The net outgo on the primary income account, mainly reflecting payments of investment income, decreased to $10.5 billion in Q1 of the current financial year from $13.3 billion in the same quarter of 2025-26.
Personal transfer receipts under secondary income account, mainly representing remittances by Indians employed overseas, rose to $ 42.9 billion during the first quarter from $33.2 billion in the same period of the previous year.
Foreign direct investment (FDI) recorded a net inflow of $ 6.1 billion in the first quarter, up from $5.2 billion in the same quarter last year.
However, foreign portfolio investment (FPI) in the stock markets recorded a net outflow of $9.6 billion in the April-June quarter as against a net inflow of $1.6 billion in the same period of 2025-26.
Non-resident deposits (NRI deposits) recorded a net inflow of $ 2.8 billion during the quarter as compared to $3.6 billion in the year-ago period.
Net inflows under external commercial borrowings (ECBs) to India amounted to $3.3 billion in the first quarter as compared to $4.4 billion in the same period of the previous financial year.
Foreign exchange reserves depleted by $8.1 billion on a balance of payments basis as against an accretion of $4.5 billion in the first quarter of 2025-26, the statement added.
–IANS
sps/vd