India’s current account deficit (CAD) narrowed to $8.3 billion in April 2026, equivalent to 1.3% of GDP, according to the Reserve Bank of India’s latest balance of payments report released on June 15. This marks a significant improvement from the $14.2 billion deficit recorded in the same month last year, reflecting changes in trade and capital flows.
The RBI report detailed that the narrowing of the CAD was driven by a reduction in the trade deficit and increased net inflows in the financial account. Exports rose moderately while imports declined, contributing to a smaller trade gap. Foreign portfolio investments and foreign direct investments also supported the capital account, offsetting pressures on the external sector.
This improvement in the current account is notable amid global economic uncertainties and fluctuating commodity prices. The $8.3 billion deficit compares favorably with previous months and aligns with the government’s efforts to stabilize external balances. Analysts view this as a positive sign for India’s external sector resilience, especially when compared with the wider deficits seen in early 2025.
The RBI’s balance of payments data for April 2026 provides a detailed snapshot of India’s external economic transactions, with the next monthly update scheduled for mid-July. The report underscores the ongoing adjustments in trade and capital flows that influence India’s external stability.