India's current account slips into $2 billion deficit in May as trade gap widens

India's financial landscape shifted in May, marked by a current account deficit alongside a narrower capital account deficit. The total balance of payments registered a $4.4 billion deficit, mainly due to a substantial merchandise deficit of $27.9 billion, overshadowing service surpluses and remittances. Furthermore, foreign portfolio investors began to temper their divestments in the local markets, with the central bank noting an outflow in foreign direct investment.