Current account deficit of India moderates to $12.3 billion in 2nd Quarter : RBI

The Reserve Bank of India (RBI) data showed that India’s current account deficit moderated to $12.3 billion, or 1.3 per cent of the gross domestic product (GDP) in Q2 2025 from $20.8 billion, or 2.2 per cent of GDP, in the year-ago period, the Reserve Bank of India (RBI) data showed.In the 1st quarter 2025, the current account balance recorded a deficit of $2.4 billion, or 0.2 per cent of GDP. The current account deficit is the difference between exports and imports of goods and services. It is a key indicator of the country’s external sector.

The data showed The merchandise trade deficit at $87.4 billion in Q2 FY26 was lower than $88.5 billion in the same quarter of the previous year, the data showed.Personal transfer receipts under secondary income accounts, mainly representing remittances by Indians employed overseas, rose to $38.2 billion in Q2 FY26 from $34.4 billion in the corresponding quarter of the last year.

Foreign direct investment (FDI) recorded a net inflow of $2.9 billion as against a net outflow of $2.8 billion in the corresponding period of 2024-25. Foreign portfolio investment (FPI) recorded a net outflow of $5.7 billion as against a net inflow of $19.9 billion in the year-ago quarter.India’s foreign exchange reserves depleted by $10.9 billion on a balance of payments (BoP) basis in Q2 FY26 as against an accretion of $18.6 billion in in the year-ago period.