FX.co ★ India’s Current Account Swings Back to Deficit in Q2 2026

India’s current account balance, measured as a percentage of GDP, shifted back into deficit in the second quarter of 2026, dropping to -0.50% from a surplus of 0.70% in the first quarter of the year. The latest figures, updated on 1 September 2026, underscore a quarter-over-quarter deterioration in India’s external position.

On a quarter-over-quarter basis, the “actual” comparison reflects this move from a positive 0.70% of GDP in Q1 2026 to a negative 0.50% in Q2 2026, signaling a notable weakening relative to the previous quarter. The “previous” comparison had captured the change in Q1 2026 against the quarter before it, when the balance had improved to reach the 0.70% surplus.

The reversal into deficit suggests that external dynamics became less favorable in the second quarter, eroding the surplus built up earlier in the year and marking a renewed draw on external financing relative to GDP.