India’s balance of payments slips into deficit in Q1FY27

India faced a significant balance of payments deficit in the first quarter, reaching $8.1 billion. This setback was predominantly due to capital account dollar outflows. Furthermore, the current account deficit increased to $3.1 billion, largely influenced by rising fuel import expenses which intensified the merchandise trade deficit. Although services and remittances saw strong performance, they weren't enough to balance the deficit.