India's current account deficit (CAD) narrowed to 0.2 per cent of GDP, or USD 2.4 billion, during the April-June period of 2025-26 compared to 0.9 per cent of the GDP, or USD 8.6 billion, in the year-ago period, helped by services exports, the RBI said on Monday. In the preceding January-March quarter, the current account was in a surplus of USD 13.5 billion (1.3 per cent of GDP). Merchandise trade deficit came in at USD 68.5 billion in Q1:2025-26 was higher than USD 63.8 billion in Q1:2024-25. Net services receipts increased to USD 47.9 billion in Q1:2025-26 from USD 39.7 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as business services and computer services. In the financial account, foreign direct investment (FDI) recorded a net inflow of USD$ 5.7 billion in Q1:2025-26 as compared to a net inflow of USD 6.2 billion a year ago. Foreign portfolio investment (FPI) recorded a net inflow of USD 1.6 billion in Q1:2025-26 as compared to a net inflow of USD 0.9 billion in Q1:2024-25, according to India's balance of payments (BoP) data.
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