India’s current account deficit (CAD) for the third quarter (October–December) of the financial year 2025–26 was $13.2 billion, equivalent to 1.3% of GDP, as per the RBI’s preliminary balance of payments data. This marks an increase from the previous year’s corresponding quarter, where the deficit was $11.3 billion, or 1.1% of GDP.
The merchandise trade deficit in Q3FY26 rose to $93.6 billion from $79.3 billion a year earlier. Goods exports totaled $111.7 billion, while imports were at $205.3 billion during the quarter, resulting in a net goods deficit of $93.6 billion.
Services exports and remittances from Indians working abroad saw significant growth in the quarter. Net services receipts increased to $57.5 billion in Q3FY26 from $51.2 billion in Q3FY25, with notable rises in categories like computer services.
Personal transfer receipts, reflecting remittances from Indians employed overseas, rose to $36.9 billion from $35.1 billion in the previous year. The primary income account, mainly reflecting investment income payments, showed a decrease in net outgo 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, while foreign portfolio investment (FPI) saw a net outflow of $0.2 billion. Non-resident deposits had a net inflow of $5.1 billion, and external commercial borrowings (ECBs) had net inflows of $3.3 billion during the quarter.
Foreign exchange reserves decreased by $24.4 billion in Q3FY26 on a balance of payments basis. However, for the nine-month period from April to December 2025, the current account deficit moderated to $30.1 billion, or 1.0% of GDP, from $36.6 billion in the same period in 2024.
Net invisible receipts, including services, primary income, and secondary income accounts, amounted to $221.5 billion during April–December 2025, higher than the previous year. Net FDI inflows increased to $3.0 billion, while FPI recorded net outflows of $4.3 billion during the same period.
