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The Economic Times

Science/Tech / The Economic Times

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Indias current account deficit widens to $4.2 billion in Q1 FY27

India's current account deficit grew to $4.2 billion in the first quarter of 2026-27. A wider merchandise trade deficit significantly impacted this widening balance of payments. Stronger services receipts and higher transfers partially offset the increased trade imbalance. Foreign direct investment saw a net inflow, while portfolio investment recorded an outflow. Foreign exchange reserves declined substantially, reflecting valuation losses and other factors.

1 Sep 2026 6:02 pm