India’s External Balance Steadies with $2.4 Billion Current Account Gap in Q1 FY26

India recorded a current account deficit of $2.4 billion in the first quarter of FY26, supported by resilient exports and service-sector inflows. The gap narrowed from the prior quarter as remittance growth and moderating oil imports cushioned trade imbalances. Economists said improved foreign investment sentiment and contained import bills helped stabilize external metrics. Despite global trade uncertainty, India’s overall external position remains strong. Analysts project the deficit will stay below 1% of GDP this fiscal year if commodity prices remain stable.