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Informist, Monday, Mar. 2, 2026

 

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--RBI: India Oct-Dec current account deficit $13.2 bln 
--RBI: India Oct-Dec CAD $13.2 bln vs $11.3 bln CAD year ago 
--RBI: India Oct-Dec CAD 1.3% of GDP vs 1.1% year ago 
--RBI: India Oct-Dec CAD $13.2 bln vs $14.1 bln quarter ago 
--RBI: India Oct-Dec CAD up on higher merchandise trade deficit on year 
--RBI: Oct-Dec net depletion to FX reserves $24.4 bln on BoP basis 
--RBI:Oct-Dec net portfolio investment outflows $177 mln vs $11.4 bln yr ago 
--RBI: India Oct-Dec net FDI outflow $3.7 bln vs $2.8 bln year ago 

 

MUMBAI – India's current account deficit expanded to $13.2 billion in the quarter ended December from $11.3 billion a year ago, the Reserve Bank of India said Monday. The current account was in a deficit of $14.1 billion in the September quarter.

 

The deficit was 1.3% of GDP in the December quarter, higher than 1.1% of GDP a year ago but lower than 1.5% a quarter ago. The current account deficit was $30.1 billion, or 1% of GDP, in Apr-Dec, lower than $36.6 billion, or 1.3% of GDP, in the corresponding year-ago period.

 

"India's current account deficit widened to $13.2 billion in Q3 FY2026 (Oct-Dec) from $11.3 billion in the year ago quarter, printing well below ICRA's forecast of $20 billion for the quarter. The undershooting was largely led by a lower-than-expected merchandise trade deficit and primary income outflows," Aditi Nayar, chief economist, ICRA Ltd., said.

 

The merchandise trade deficit rose to $93.6 billion in the December quarter from $79.3 billion a year ago. Net services receipts increased to $57.5 billion from $51.2 billion in the December quarter a year ago.

 

The foreign exchange reserves on balance-of-payments basis were depleted by $24.4 billion in the December quarter, against a depletion of $37.7 billion a year ago, the RBI said. In the nine months ended December, there was a depletion of $30.8 billion in the foreign exchange reserves on a balance-of-payments basis, against a depletion of $13.8 billion in the corresponding year-ago period.

 

Foreign portfolio investment recorded a net outflow of $177 million in Oct-Dec, much lower than the net outflow of $11.4 billion a year ago. For the nine months ended December, foreign portfolio investment recorded a net outflow of $4.3 billion, also lower than the net inflow of $9.4 billion a year ago. Net foreign direct investment inflows rose to $3 billion during Apr-Dec, from $600 million a year ago. Net FDI outflows rose to $3.7 billion in the December quarter from $2.8 billion a year ago.

 

ICRA sees India's current account deficit at 0.6-0.7% of GDP in the financial year ending Mar. 31, rising "thereafter to around 1% of GDP in FY2027, albeit with risks tilted to the upside". Economists have said India's current account deficit could widen if crude oil prices stay higher for a long period following the outbreak of hostilities in West Asia.

 

The net outgo on the primary income account, which reflects payments of investment income, declined to $12.2 billion in Oct-Dec from $16.4 billion a year ago. Personal transfer receipts under the secondary income account, mainly representing remittances by Indians employed overseas, rose to $36.9 billion in the December quarter from $35.1 billion a year ago.  End

 

US$1 = INR 91.47

 

Reported by J. Navya Sruthi 

Edited by Rajeev Pai

 

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