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.
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.
On the capital side, foreign direct investment (FDI) posted a net inflow of $2.9 billion, compared with an outflow of $2.8 billion a year earlier. Foreign portfolio flows swung to a $5.7 billion outflow from a $19.9 billion inflow, while external commercial borrowings (ECB) slowed to $1.6 billion from $5 bill ..
Non-resident deposits fell to $2.5 billion from $6.2 billion.
Foreign exchange reserves declined by $10.9 billion on a balance of payments basis, reversing an accretion of $18.6 billion in the same quarter last year.
For the first half of the fiscal year, the current account deficit narrowed to $15 billion (0.8% of GDP) from $25.3 billion a year ago, while reserves fell by $6.4 billion compared with a $23.8 billion increase.
Source Name : Economic Times