Current Account Deficit
Structure and Measurement
The Current Account is one of the two main components of a country's Balance of Payments (BoP), the other being the Capital and Financial Account. The Current Account records all transactions involving goods, services, income, and current transfers between India and the rest of the world. CAD = Trade Deficit (imports > exports) + Net Invisible Deficit (or surplus). Invisibles include: services (software, tourism, transportation), primary income (investment returns, employee compensation), and secondary income (remittances, private transfers). India typically runs a trade deficit (imports significantly exceed exports) which is partially offset by a services surplus and large remittance inflows.
- CAD formula: CAD = (Merchandise Imports - Merchandise Exports) + Net Invisibles (Services + Primary + Secondary Income)
- India's merchandise trade deficit in Q3 FY26: $93.6 billion (key driver of CAD widening)
- Net services surplus: $57.5 billion (partially offsets trade deficit)
- Remittances (secondary income): $36.9 billion in Q3 FY26
- India is historically the world's largest recipient of remittances by value
- RBI publishes Balance of Payments data quarterly
● Tracked since March 02, 2026 · last seen May 19, 2026 · updates as the daily brief publishes