CAD rises to $7.4 billion in September from $5.2 billion a year ago

India’s current account deficit (CAD) widened to $7.4 billion in September 2026 from $5.2 billion in the year-ago month, mainly due to higher import bill, according to Reserve Bank data released on Friday. A current account deficit exists when a country spends more on imports than it receives in revenue from exports.

The merchandise trade deficit stood at $30 billion in September this fiscal, lower than $33.4 billion in the same month last year. Merchandise imports increased to $75.3 billion from $69.8 billion, while exports rose to $45.3 billion from $36.4 billion. Net receipts from services increased marginally to $19.2 billion from $18.8 billion in September last year, according to the Preliminary data on India’s balance of payments (BoP) for September 2026.

Services exports rose to $39.3 billion from $36.7 billion, while imports increased to $ 20.1 billion from $17.8 billion. Net transfers declined to $10.9 billion from $11.5 billion during the month. The net outgo under the income account more than tripled to $7.6 billion from $2.2 billion in September 2025. In April-September 2026-27, the deficit widened to $ 25.8 billion from $ 18 billion a year ago.

The merchandise trade deficit increased to USD 176.1 billion from $158.1 billion as imports rose to $441.4 billion from $379.6 billion. Exports increased to $ 265.3 billion from $221.5 billion.

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The Hans India