CAD widens to $13.2 bn in Q3 due to higher trade deficit
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Mumbai: India’s current account deficit (CAD) rose to $ 13.2 billion, or 1.3 per cent of GDP, in the December quarter from $ 11.3 billion in the year-ago period, mainly due to a higher trade deficit caused by a decline in exports to the US, according to RBI data released on Monday.
However, the current account deficit moderated to $ 30.1 billion (1 per cent of GDP) in April-December 2025, from $ 36.6 billion (1.3 per cent of GDP) in the same period a year ago.
“India’s current account deficit increased to $ 13.2 billion (1.3 per cent of GDP) in Q3:2025-26 from $ 11.3 billion (1.1 per cent of GDP) in Q3:2024-25,” the RBI’s data on Developments in India’s Balance of Payments said. Merchandise trade deficit at $ 93.6 billion in the quarter was higher than $ 79.3 billion in the same period a year ago. Net services receipts increased to $ 57.5 billion during the period from $ 51.2 billion a year ago, the RBI said.
