India’s current account deficit (CAD) edged deeper in the third quarter of 2025, with the balance slipping to -$13.20 billion, compared with a previous reading of -$12.30 billion for the same period. The data, updated on 2 March 2026, point to a modest deterioration in the country’s external position during Q3.
While the change in the deficit is incremental, the move suggests additional pressure on India’s external accounts, potentially reflecting a combination of softer export receipts, firmer import demand, or shifts in income and transfer flows. The widening gap underscores the importance of monitoring India’s trade and capital inflows, as persistent current account shortfalls can influence currency dynamics and external funding needs.
Market participants and policymakers are likely to watch subsequent quarters closely to determine whether the Q3 2025 figures mark the start of a trend or a temporary fluctuation in India’s balance-of-payments profile.
