Now Reading: India’s current account deficit widens to $6.2 bn in June
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India’s current account deficit widens to $6.2 bn in June
India's current account deficit (CAD) widened to $6.2 billion in June 2026 from a surplus of $1.2 billion a year ago, according to RBI's preliminary data. The merchandise trade deficit ballooned to…
The Story in Brief
India's current account deficit (CAD) widened to $6.2 billion in June 2026 from a surplus of $1.2 billion a year ago, according to RBI's preliminary data. The merchandise trade deficit ballooned to $30.2 billion as imports surged 31% to $71.4 billion while exports rose 16.7% to $41.2 billion. Services net surplus improved to $17.9 billion from $16.2 billion, and net transfers rose to $11.9 billion.
The capital account recorded a net surplus of $9.1 billion, reversing a deficit of $1.6 billion in June 2025, led by banking capital ($8.2 billion) and short-term credit ($1.6 billion). Foreign portfolio investment was a net $2.5 billion inflow. Overall balance stood at a surplus of $2.9 billion, against a deficit of $0.4 billion last year. RBI data shows NRI deposits netted $1.4 billion in June.
The Indian Opinion
The widening current account deficit to $6.2 billion in June from a surplus a year ago is being labelled a worry, but the context is missing. Merchandise exports grew 16.7% and imports 31%, signalling strong domestic demand and global trade. The services surplus and robust capital inflows, led by banking capital and NRI deposits, kept the overall balance in surplus. Alarmists ignore that a deficit financed by stable capital flows is manageable. The key test is whether the deficit persists as global rates ease and commodity prices stabilise.
Source: rbi.org.in
This story was synthesised by AI from the source linked above.
