India current account deficit widens to 7.4 billion dollars

India’s current account deficit widened to 7.4 billion dollars in September 2026 from 5.2 billion dollars in September 2025, the Reserve Bank of India said in preliminary balance of payments data. The merchandise trade deficit narrowed to 30.0 billion dollars as exports rose to 45.3 billion, and net services receipts edged up to 19.2 billion, but net income outflows jumped to 7.6 billion dollars from 2.2 billion a year earlier.

The capital account recorded a net inflow of 16.2 billion dollars, driven by banking capital of 22.2 billion, which outweighed net outflows on foreign direct investment of 4.9 billion and portfolio investment of 6.7 billion. The overall balance was a surplus of 8.8 billion dollars, implying an equivalent increase in reserves, against a 5.6 billion dollar deficit a year earlier. For April to September, the current account deficit widened to 25.8 billion dollars from 18.0 billion.