Indias Q1FY26 CAD narrows to $2.4 billion

India’s present account deficit (CAD) narrowed to $2.4 billion (0.2% of GDP) within the April-June quarter (Q1FY26) from $ 8.6 billion (0.9% of GDP) within the yr in the past interval and in opposition to a surplus of $13.5 billion (1.3% of GDP) in This autumn:FY25, in line with knowledge launched by the Reserve Bank of India (RBI) on Monday (September 1, 2025).

Merchandise commerce deficit at $68.5 billion in Q1FY 26 was larger than $63.8 billion in Q1FY25.

Net providers receipts elevated to $ 47.9 billion in Q1FY26 from $ 39.7 billion a yr in the past. Services exports have risen on a y-o-y foundation in main classes akin to enterprise providers and pc providers, as per RBI knowledge.

Net outgo on the first earnings account, primarily reflecting funds of funding earnings, elevated to $12.8 billion in Q1FY26 from $10.9 billion in Q1FY25.

Personal switch receipts, primarily representing remittances by Indians employed abroad, rose to $33.2 billion in Q1DY26 from $28.6 billion in Q1FY25.

In the monetary account, overseas direct funding (FDI) recorded a web influx of $5.7 billion within the quarter as in contrast with a web influx of $6.2 billion a yr in the past.

Foreign portfolio funding (FPI) recorded a web influx of $1.6 billion in Q1FY26 as in comparison with a web influx of $0.9 billion a yr in the past, as per RBI knowledge.

Net inflows below exterior business borrowings (ECBs) to India amounted to $3.7 billion in Q1:2025-26, as in comparison with US$ 1.6 billion within the corresponding interval a yr in the past.

Non-resident deposits (NRI deposits) recorded a decrease web influx of $3.6 billion within the quarter than $4.0 billion in the identical interval final yr.

There was an accretion of $ 4.5 billion to the overseas alternate reserves (on a BoP foundation) within the quarter as in comparison with an accretion of $5.2 billion in Q1FY25.