India’s current account deficit widened to $4.2 billion, or 0.5% of GDP, in Q1 of fiscal year 2026–27, up from $3.4 billion, or 0.4% of GDP, a year earlier. The deterioration was largely driven by a higher goods trade deficit, which expanded to $86.1 billion from $68.9 billion, as imports surged 20% to $218.0 billion amid elevated energy prices, while exports increased 17.1% to $132.0 billion.
The adverse impact on the current account was partially cushioned by an improvement in the primary income balance, with the deficit narrowing to $10.5 billion from $13.3 billion. In addition, the services trade surplus rose to $51.6 billion from $47.9 billion, and the secondary income surplus increased to $40.8 billion from $30.9 billion.
