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India’s Current Account Deficit Widens to $13.2 Billion in Q3 FY26 as Trade Gap Deepens

A wider goods deficit outpaced services strength, pressuring reserves.

Overview

  • The shortfall equaled 1.3% of GDP in October–December, up from 1.1% a year earlier, as the prior quarter was revised to $14.1 billion or 1.5% of GDP.
  • The merchandise trade deficit rose to $93.6 billion, with imports at $205.3 billion versus $111.7 billion in exports.
  • Supportive cushions persisted as net services receipts reached $57.5 billion, remittances climbed to $36.9 billion, and primary income outgo eased to $12.2 billion.
  • On a balance‑of‑payments basis, foreign exchange reserves fell by $24.4 billion, alongside a $3.7 billion net FDI outflow, marginal FPI outflows, and $5.1 billion in NRI deposit inflows.
  • For April–December, the deficit moderated to $30.1 billion (1.0% of GDP), with reports citing earlier U.S. trade measures, heavier gold imports, and higher crude as current risks, while RBI buy‑sell swaps may cushion near‑term flows.