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flag India's current account deficit narrows to $2.4B, but trade deficit and US tariffs pose concerns.

flag India's current account deficit (CAD) for the first quarter of fiscal year 2025-26 was $2.4 billion, or 0.2% of GDP, narrower than the $8.6 billion deficit in the same period last year. flag The merchandise trade deficit increased to $68.5 billion, while net services receipts rose to $47.9 billion. flag Remittances also increased to $33.2 billion, contributing to a slight improvement in the overall balance. flag Despite these gains, concerns remain over potential impacts from US tariffs on Indian goods.

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