India’s current account deficit (CAD) widened to $7.4 billion in September 2026 from $5.2 billion in the corresponding month last year, mainly due to a sharp rise in primary income outflows and a slight dip in remittances, according to data released by the Reserve Bank of India (RBI) on Friday. A CAD occurs when a country’s total expenditure on foreign goods, services, and income payouts exceeds its earnings from exports and transfers. Merchandise trade deficit Despite merchandise imports rising to $75.3 billion in September from $69.8 billion a year earlier, the monthly goods trade gap narrowed. The merchandise trade deficit stood at $30 billion in September this fiscal year, lower than $33.4 billion in the same month last year, as exports grew faster to reach $45.3 billion compared with $36.4 billion a year ago.