Current Account Deficit
Latest reading: 0.5 % of GDP for Q1 FY2026-27 (+0.1 pp vs year-ago quarter).
Current Account Deficit
Net balance on trade in goods and services plus income and transfers, expressed as a share of GDP. A contained deficit signals a sustainable external position.
What it means
Net balance on trade in goods and services plus income and transfers, expressed as a share of GDP. A contained deficit signals a sustainable external position.
CAD $4.2 bn (0.5% of GDP) vs $3.4 bn (0.4%, revised) a year earlier; merchandise trade deficit widened to $86.1 bn from $68.9 bn. One secondary outlet reported $3.1 bn for the same quarter — treated as erroneous since Reuters, PTI and ANI all quote the RBI release at $4.2 bn. RBI press release listing page returned stale cache; link the specific BoP release when available.
Release details
- Category
- EXTERNAL
- Frequency
- QUARTERLY
- Previous
- 0.4
- Benchmark
- MacroNest anchor: CAD below 2% of GDP
- Released
- 2026-09-01
- Next release
- Expected: 2026-12-31
- Source
- RBI — Developments in India's Balance of Payments
Key questions about Current Account Deficit
What is the current Current Account Deficit?
Current Account Deficit stands at 0.5 % of GDP for Q1 FY2026-27, against 0.4 % of GDP previously (+0.1 pp vs year-ago quarter). Net balance on trade in goods and services plus income and transfers, expressed as a share of GDP. A contained deficit signals a sustainable external position.
Who publishes the Current Account Deficit data?
Current Account Deficit is published by RBI — Developments in India's Balance of Payments on a quarterly basis. Release window: ~2-3 months after quarter end. The next update is expected on Expected: 2026-12-31.
What is a healthy level for Current Account Deficit?
The reference benchmark used on MacroNest is: MacroNest anchor: CAD below 2% of GDP. The latest reading of 0.5 % of GDP is currently assessed as "Contained, modestly wider".
Why does Current Account Deficit matter?
External sector indicators shape the rupee's trajectory and India's resilience to global capital flow shocks. Net balance on trade in goods and services plus income and transfers, expressed as a share of GDP. A contained deficit signals a sustainable external position.