India's CAD rises to $3.1 billion amid West Asia crisis
India's current account deficit (CAD) nudged up to $3.1 billion in Q1FY27, compared to $2.9 billion last year, said the RBI.
The main reason? India's trade gap widened sharply: imports like oil, gas, and farm supplies soared due to the West Asia crisis, pushing the trade deficit from $68.9 billion to $85.7 billion.
Services surplus and remittances cushion CAD
Even with higher imports, things weren't all bad: net services receipts brought in a solid surplus of $52.2 billion and remittances jumped to $41.4 billion (from last year's $30.9 billion), helping cushion the blow.
On the flip side, India's capital account slipped into a $5 billion deficit after last year's surplus, but foreign direct investment hit a nine-quarter high at $7.8 billion, giving the economy some breathing room during a tricky period.