Economy, Banking and Finance · 2 September 2026

RBI Reports India's Current Account Deficit Widens to $4.2 Billion in Q1 2026-27

Exam-focused facts from the 2 September 2026 current affairs briefing.

Key facts

  • India's current account deficit (CAD) widened to $4.2 billion (0.5% of GDP) in Q1 2026-27 from $3.4 billion (0.4% of GDP) in Q1 2025-26.
  • The merchandise trade deficit increased to $86.1 billion from $68.9 billion year-on-year.
  • Net services receipts rose to $51.6 billion from $47.9 billion in the same quarter last year.
  • Personal transfer receipts (remittances) increased to $42.9 billion from $33.2 billion.
  • Net FDI inflows rose to $6.1 billion from $5.2 billion, while portfolio flows turned to a net outflow of $9.6 billion from an inflow of $1.6 billion.