India’s current account balance for October–December 2025 stood at -1.3% of GDP, with a deficit of $13.2 billion, according to the Reserve Bank of India (RBI). The balance of payments recorded a shortfall of $24.4 billion, while the merchandise trade deficit widened to $93.6 billion, reflecting global demand pressures.
The Reserve Bank of India (RBI) has released data showing India’s current account deficit (CAD) at $13.2 billion (1.3% of GDP) for the October–December quarter of FY26. The widening deficit is attributed to a larger merchandise trade gap, which reached $93.6 billion, driven by higher imports and moderating exports.
The balance of payments (BoP) also recorded a deficit of $24.4 billion, highlighting external sector pressures amid global economic uncertainties. Despite the CAD widening, India’s foreign exchange reserves remain robust, providing a cushion against external shocks.
Economists note that while services exports continue to support the current account, rising oil prices and weaker global demand have weighed on merchandise trade.
Key Highlights
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Current Account Balance: Deficit of $13.2 billion (1.3% of GDP)
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Balance of Payments: Deficit of $24.4 billion in Q3 FY26
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Merchandise Trade Deficit: $93.6 billion
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Drivers: Higher imports, weaker exports, global demand slowdown
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Reserves: FX reserves remain strong, mitigating external risks
This data underscores India’s external sector challenges, with policymakers expected to monitor trade dynamics closely while sustaining growth momentum.
Sources: Reserve Bank of India (RBI), Reuters, Economic Times