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

India's current account deficit reached $4.2 billion in the first quarter of the fiscal year. This widening was primarily driven by a higher merchandise trade deficit, which increased significantly. Net services receipts saw growth, supported by strong computer and transportation service exports. Foreign direct investment recorded a net inflow, while portfolio investment experienced an outflow. The country's foreign exchange reserves decreased by $8.1 billion on a balance of payments basis.