India's Current Account Deficit: A Closer Look

India's current account deficit rose to USD 13.2 billion in Q3 2025-26, compared to USD 11.3 billion the previous year, primarily due to a higher trade deficit. However, the deficit moderated to USD 30.1 billion for April-December 2025, down from USD 36.6 billion the previous year, according to RBI data.

In a recent report, the Reserve Bank of India (RBI) revealed that India's current account deficit rose to USD 13.2 billion in the December quarter, amounting to 1.3% of GDP. This marks an increase from the USD 11.3 billion recorded in the same period the prior year.

The primary driver of this increase is a higher trade deficit, with merchandise trade reaching USD 93.6 billion, up from USD 79.3 billion previously. However, it's not all bleak as the current account deficit for the nine-month period ending December 2025 moderated to USD 30.1 billion, compared to USD 36.6 billion a year earlier.

Notably, the net services receipts rose to USD 57.5 billion from the previous year's USD 51.2 billion. This data reflects ongoing trends within India's Balance of Payments and highlights the complexities of its economic landscape.

(With inputs from agencies.)