India’s current account deficit widened to $13.2 billion or 1.3% of the country's gross domestic product in the third quarter from $11.3 billion or 1.1% of GDP in the year ago period, Reserve Bank of India data showed.
The deficit was higher year-on-year largely on account of widening merchandise trade deficit at $93.6 billion as compared with $79.3 billion over the same period.
It was however lower than the second quarter print, which was revised upwards to $14.1 billion or 1.5% of GDP from $12.3 billion (1.3% of GDP) due to upward revision of imports in customs data, the central bank said.
During the third quarter, net services receipts rose to $57.5 billion from $51.2 billion a year ago, helped by higher services exports in major categories such as computer services and other business services.
Net outgo on the primary income account, mainly reflecting payments of investment income, dipped to $12.2 billion from $ 16.4 billion. Personal transfer receipts under secondary income accounts, mainly representing remittances by Indians employed overseas, rose to $36.9 billion from $35.1 billion.
Foreign portfolio investment (FPI) also recorded a net outflow of $0.2 billion,but it was significantly lower than a net outflow of $11.4 billion seen a year-ago.
Net inflows into non-resident deposits however rose $5.1 billion from $3.1 billion, while net inflows under external commercial borrowings by local companies to India was lower at $3.3 billion against $4.4 billion.
The country's foreign exchange reserves was depleted by $24.4 billion without considering the changes in valuation during the quarter under review as compared with a depletion of $37.7 billion in the year-ago period.
On a wider time horizon during April-December 2025, India's forex coffer dipped $30.8 billion as compared to a depletion of $13.8 billion in the year-ago period.
The reserves however rose when the changes in valuation is considered. It increased $19.4 billion during April-December 2025 as against a depletion of $0.7 billion in April-December 2024.
The valuation gain calculated at $50.2 billion for the nine months period, primarily reflected the higher price of gold, the central bank said. Depreciation of the US dollar against major currencies and lower bond yields also made a positive impact on the valuation. In the same period last year, the valuation gain was recorded at a modest $ 3.1 billion.
The deficit was higher year-on-year largely on account of widening merchandise trade deficit at $93.6 billion as compared with $79.3 billion over the same period.
It was however lower than the second quarter print, which was revised upwards to $14.1 billion or 1.5% of GDP from $12.3 billion (1.3% of GDP) due to upward revision of imports in customs data, the central bank said.
During the third quarter, net services receipts rose to $57.5 billion from $51.2 billion a year ago, helped by higher services exports in major categories such as computer services and other business services.
Net outgo on the primary income account, mainly reflecting payments of investment income, dipped to $12.2 billion from $ 16.4 billion. Personal transfer receipts under secondary income accounts, mainly representing remittances by Indians employed overseas, rose to $36.9 billion from $35.1 billion.
Financial account
In the financial account, foreign direct investment recorded a higher net outflow of $3.7 billion in the quarter under review, than a net outflow of $ 2.8 billion in the same quarter last year.Foreign portfolio investment (FPI) also recorded a net outflow of $0.2 billion,but it was significantly lower than a net outflow of $11.4 billion seen a year-ago.
Net inflows into non-resident deposits however rose $5.1 billion from $3.1 billion, while net inflows under external commercial borrowings by local companies to India was lower at $3.3 billion against $4.4 billion.
The country's foreign exchange reserves was depleted by $24.4 billion without considering the changes in valuation during the quarter under review as compared with a depletion of $37.7 billion in the year-ago period.
On a wider time horizon during April-December 2025, India's forex coffer dipped $30.8 billion as compared to a depletion of $13.8 billion in the year-ago period.
The reserves however rose when the changes in valuation is considered. It increased $19.4 billion during April-December 2025 as against a depletion of $0.7 billion in April-December 2024.
The valuation gain calculated at $50.2 billion for the nine months period, primarily reflected the higher price of gold, the central bank said. Depreciation of the US dollar against major currencies and lower bond yields also made a positive impact on the valuation. In the same period last year, the valuation gain was recorded at a modest $ 3.1 billion.
