New Delhi, Sept. 1 -- India's current account deficit widened to USD 4.2 billion, or 0.5 per cent of GDP, in the April-June quarter of the current financial year, as the country's merchandise trade deficit increased sharply, according to preliminary data released by the Reserve Bank of India (RBI) on Tuesday.

"India's current account deficit stood at US$ 4.2 billion (0.5 per cent of GDP) in Q1:2026-27 as compared to US$ 3.4 billion (0.4 per cent of GDP) in Q1:2025-26," the RBI said in its release on developments in India's balance of payments.

The merchandise trade deficit widened to USD 86.1 billion during the quarter from USD 68.9 billion in the corresponding period last year.

Higher earnings from services provided some support to th...