Overview
- RBI data show a $2.4 billion current-account deficit (0.2% of GDP) for April–June, reversing a $13.5 billion surplus in the prior quarter.
- The merchandise trade shortfall rose to $68.5 billion from $63.8 billion a year earlier as net services receipts climbed to $47.9 billion and remittances reached $33.2 billion.
- Payments on the primary income account increased to $12.8 billion, reflecting higher investment-income outflows.
- Financial-account inflows included FDI at $5.7 billion, FPI at $1.6 billion, external commercial borrowings at $3.7 billion, and non-resident deposits at $3.6 billion.
- Foreign-exchange reserves rose by $4.5 billion on a BoP basis, with economists noting that stronger remittances and front-loaded exports aided Q1 even as tariff-related risks could lift the FY26 deficit above 1% of GDP.