Synopsis

India's current account deficit saw a significant reduction in the July-September quarter. This improvement was driven

by a narrower merchandise trade deficit. The deficit stood at $12.3 billion, or 1.3% of GDP. This marks a notable

decrease from the previous year's figures. The Reserve Bank of India reported these figures on Monday.

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India's current account deficit moderated to $12.3 billion, or 1.3% of GDP in the second quarter of FY26, on the back of

a lower merchandise trade deficit, the Reserve Bank of India said on Monday.

In the preceding quarter, the current account had recorded a deficit of $2.4 billion of 0.2% of GDP.

Net services receipts increased to $50.9 billion in Q2:2025-26 from $ 44.5 billion a year ago.

India's merchandise trade deficit narrowed to $87.4 billion from $88.5 billion a year earlier, the RBI said.

Private transfer receipts, which are mainly remittances by Indians employed overseas, increased to $38.2 billion in the

quarter from an upwardly revised $34.4 billion a year earlier.

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India's balance of payments recorded a deficit of $10.9 billion, compared with a surplus of $18.6 billion a year

earlier.

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