Current account deficit widens to $4.2 bn in Q1: RBI data

New Delhi: India’s current account deficit widened to USD 4.2 billion, or 0.5 per cent of GDP, in the first quarter of the current fiscal year from USD 3.4 billion, or 0.4 percent of GDP, a year ago, according to Reserve Bank data released on Tuesday.

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Merchandise trade deficit at USD 86.1 billion in the April-June period of 2026-27 was higher than USD 68.9 billion in the first quarter of 2025-26.

Net services receipts increased to USD 51.6 billion in Q1 2026-27 from USD 47.9 billion a year ago, the RBI said.

"Services exports have risen on a year-on-year basis in major categories such as computer services, other business services and transportation services," it said.

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The data also showed that personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to USD 42.9 billion in Q1 2026-27 from USD 33.2 billion in Q1 2025-26.

Further, foreign direct investment (FDI) recorded a net inflow of USD 6.1 billion in the first quarter, higher than USD 5.2 billion in the comparable period of the last financial year.

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