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Current Account Back in Deficit, 0.2% in Q1
Financial Express Kochi
|September 02, 2025
Current quarter may see higher CAD, weaker capital account
INDIA'S CURRENT ACCOUNT balance recorded a deficit of $2.4 billion or 0.2% of the gross domestic product (GDP) in Q1FY26 as compared with a deficit of $8.6 billion (0.9%) in the year-ago quarter and a surplus of $13.5 billion (1.3%) in Q4FY25, the RBI said on Monday.
Despite the rather benign CAD, on a balance of payments basis, just $4.5 billion accrued to the foreign exchange reserves in the April-June quarter of the current financial year, as capital inflows remained subdued. Q1FY25 saw accretion of $5.2 billion to reserves, while the same in Q4FY25 was $8.8 billion.
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