India's Current Account Deficit
Composition and Management
India's Current Account Deficit represents the difference between what India earns (exports of goods, services, income receipts, remittances) and what it spends (imports of goods, services, income payments, remittances sent out) on international transactions. India typically runs a merchandise trade deficit (imports far exceed goods exports — primarily due to crude oil imports) that is partially offset by a services trade surplus (IT, BPO, software exports) and large remittances inflows. India is the world's largest recipient of remittances: approximately $135.4 billion in FY25, accounting for a record-high share of GDP. The 40-year average CAD (1980-2020) was 1.4% of GDP; the recent 6-year average of 0.75% reflects stronger services exports and remittances, and moderate import growth.
- India's CAD (FY25 estimate): ~0.7-1.0% of GDP (range; varies by crude prices)
- 40-year historical average CAD: ~1.4% of GDP
- 6-year average CAD (FY20-FY25): ~0.75% of GDP
- Peak CAD: 4.8% of GDP (FY2012-13; triggered crisis intervention with FCNR-B scheme)
- Services trade surplus: ~$150 billion+ (FY25; IT, BPO, finance, professional services)
- India's goods trade deficit: ~$240-260 billion (FY25; crude oil imports dominate)
- Remittances to India: $135.4 billion (FY25; world's largest recipient)
- Remittance sources: US (~23%), UAE (~18%), UK (~5%), Saudi Arabia, others
● Tracked since February 24, 2026 · last seen May 29, 2026 · updates as the daily brief publishes