India’s current account deficit widens to $4.2 billion in Q1 FY27

India's current account deficit grew to $4.2 billion in the first quarter of 2026-27. A wider merchandise trade deficit significantly impacted this widening balance of payments. Stronger services receipts and higher transfers partially offset the increased trade imbalance. Foreign direct investment saw a net inflow, while portfolio investment recorded an outflow. Foreign exchange reserves declined substantially, reflecting valuation losses and other factors.