India’s current account deficit increased in the second quarter of 2026, with the balance slipping to -$4.20 billion from a previous level of -$3.10 billion. The latest figures, updated on 1 September 2026, indicate a further deterioration in the country’s external position over the same quarterly period.
The widening deficit suggests that India’s outflows on goods, services, income, and transfers continued to outpace inflows during the quarter. While the data provided do not specify the underlying drivers, the negative trend in the current account balance points to rising external financing needs and may heighten investor focus on the sustainability of India’s external accounts going into the second half of 2026.
