Current Account Deficit (CAD) widened to $4.2 billion in Q1 FY27 (April–June 2026)
GK and monthly revision
India’s current account deficit widens to $4.2 billion in Q1 FY27
India's current account deficit widened to $4.2 billion in Q1 FY27 (April-June 2026), driven by a rising merchandise trade deficit despite growth in net services receipts from computer and transport exports. FDI saw net inflows while portfolio investment recorded outflows. Forex reserves declined by $8.1 billion on a BoP basis. This data is critical for UPSC, Banking, and SSC exams testing balance of payments components, external sector trends, and RBI's reserve management.
Source: Economic Times. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.
Revision structure
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Key points
Exam-ready takeaways
Widening driven by higher merchandise trade deficit
Net services receipts grew, supported by strong computer and transportation service exports
Foreign Direct Investment (FDI) recorded net inflow; Portfolio Investment saw net outflow
Foreign exchange reserves decreased by $8.1 billion on balance of payments basis
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