India's current account deficit estimated at 1.3% of GDP in Q4

India's current account deficit (CAD) stood at $13.2 billion, or 1.3 per cent of GDP, in the third quarter (October-December) of the financial year 2025-26, according to the RBI's preliminary data on the balance of payments released on Monday.

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The deficit stood at $11.3 billion, or 1.1 per cent of GDP, in the corresponding quarter of the previous financial year.

The merchandise trade deficit increased to $93.6 billion in Q3FY26 from $79.3 billion a year earlier. Within the current account, goods exports amounted to $111.7 billion, while imports stood at $205.3 billion during the quarter, resulting in a net goods deficit of $93.6 billion, the data showed.

However, there was a robust increase in services exports and remittances sent back home by Indians working overseas during the quarter.

Net services receipts rose to $57.5 billion in Q3FY26 from $51.2 billion in Q3FY25. The RBI stated that services exports increased on a year-on-year basis in major categories such as computer services and other business services.

Personal transfer receipts under the secondary income account, representing remittances by Indians employed overseas, increased to $36.9 billion from $35.1 billion a year earlier.

Net outgo under the primary income account, which mainly reflects investment income payments, declined to $12.2 billion in Q3FY26 from $16.4 billion in the year-ago quarter.

Foreign direct investment (FDI) recorded a net outflow of $3.7 billion in Q3FY26, compared with a net outflow of $2.8 billion in Q3FY25, the data showed.