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India posted a current account deficit of $2.5 billion in the first quarter of the 2026 financial year, narrowing from the $6.6 billion gap in the corresponding quarter of the previous year to mark the softest deficit in the period since 2021. The development was owed to an increase in the surplus of services ($47.9 billion vs $39.7 billion in FY26Q1) and the secondary income account ($31.0 billion vs $26.3 billion). These were enough to offset a wider goods deficit ($-68.5 billion vs $-63.8 billion) amid higher imports of general goods, in addition to a wider deficit in the primary income account ($-12.8 billion vs $-10.9 billion).