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2025.09.0113:00:56UTC+00India Current Account Narrows

In the first quarter of the 2026 fiscal year, India recorded a current account deficit of $2.5 billion. This marks a significant narrowing from the $6.6 billion deficit observed in the same period the previous year, representing the smallest deficit since 2021. This improvement was primarily driven by an increase in the services surplus, which rose to $47.9 billion from $39.7 billion, and an uptick in the secondary income account, which increased to $31.0 billion from $26.3 billion. These gains were sufficient to outweigh a widening goods deficit, which expanded to $68.5 billion from $63.8 billion, largely due to increased imports of general goods. Additionally, the primary income account saw a larger deficit, widening to $12.8 billion from $10.9 billion.

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