India's current account deficit rises to $13.2 billion in Q3: RBI

India’s current account deficit (CAD) has increased to US$13.2 billion or 1.3 per cent of GDP in Q3 (October–December) in FY2025-26 from US$ 11.3 billion or 1.1 per cent of GDP in Q3 in FY2024-25, as per the data released by RBI.

The merchandise trade deficit increased to US$ 93.6 billion in Q3 FY26 from US$ 79.3 billion in Q3 in FY25. While the net services receipts increased to US$ 57.5 billion in Q3 in 2025-26 from US$ 51.2 billion a year ago.

Net services receipts increased to US$ 57.5 billion in Q3 in FY26 from US$ 51.2 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as computer services and other business services.

Net outgo on the primary income account, mainly reflecting payments of investment income, decreased to US$ 12.2 billion in Q3 in the fiscal year 2025-26 from US$ 16.4 billion in Q3 in FY25.

The personal transfer receipts under secondary income account, mainly representing remittances by Indians employed overseas, rose to US$ 36.9 billion in Q3 in 2025-26 from US$ 35.1 billion in Q3 in 2024-25.

In the financial account, foreign direct investment (FDI) recorded a net outflow of US$ 3.7 billion in Q3 in the fiscal year 2025-26, higher than a net outflow of US$ 2.8 billion in Q3 in 2024-25. Foreign portfolio investment (FPI) recorded a net outflow of US$ 0.2 billion in Q3 in FY2025-26, lower than a net outflow of US$ 11.4 billion in Q3 in FY2024-25.

Meanwhile, the non-resident deposits (NRI deposits) recorded a net inflow of US$ 5.1 billion in Q3 in 2025-26, higher than US$ 3.1 billion in Q3 in 2024-25. Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 3.3 billion in Q3 in 2025-26, lower than a net inflow of US$ 4.4 billion in Q3 in 2024-25.

The foreign exchange reserves depleted by US$ 24.4 billion (on a BoP basis) in Q3 in the fiscal year 2025-26 as compared with a depletion of US$ 37.7 billion in Q3 in 2024-25.