Mumbai- India’s current account deficit moderated to $12.3 billion or 1.3 per cent of GDP in the second quarter (July-September) of 2025-26 from $20.8 billion or 2.2 per cent of GDP in the same quarter of the previous financial year, according to RBI data released on Monday. The merchandise trade deficit, at $87.4 billion during the quarter, was lower than the corresponding figure of $88.5 billion in the same quarter of 2024-25.Net services receipts during Q2 of the current financial year increased to $50.9 billion from $44.5 billion a year ago.Services exports have risen on a year-on-year basis in major categories such as computer services and other business services, the RBI said.Net outgo on the primary income account, mainly reflecting payments of investment income, increased to $ 2.2 billion in Q2:2025-26 from $9.2 billion in Q2:2024-25.Personal transfer receipts under the secondary income account, mainly representing remittances by Indians employed overseas, rose to $38.2 billion during the quarter from $34.4 billion in the year-ago period.Foreign direct investment (FDI) recorded a net inflow of $2.9 billion during the July-Sept quarter this year, as against a net outflow of $2.8 billion in the corresponding period of 2024-25, the RBI statement said.Foreign portfolio investment (FPI) recorded a net outflow of $5.7 billion in Q2 of 2025-26 as against a net inflow of $9.9 billion in the same quarter of the previous financial year.Net inflows under external commercial borrowings (ECBs) to India amounted to $1.6 billion in Q2:2025-26 as compared with net inflows of $5 billion in the corresponding period a year ago.Non-resident deposits (NRI deposits) recorded a net inflow of $2.5 billion in the second quarter as compared with $6.2 billion a year ago.There was a depletion of $10.9 billion to the foreign exchange reserves (on a BoP basis) in Q2 of 2025-26 as against an accretion of $18.6 billion in the same quarter of the previous financial year, the statement added.
India’s CAD declines to 1.3 per cent of GDP in July-September quarter
