India's August current‑account deficit falls to $5.2 billion, RBI data shows

The Reserve Bank of India (RBI) published its external sector statistics for August, showing that the current‑account deficit narrowed to $5.2 billion. This figure represents the net balance of trade in goods and services, primary income and secondary income for the month. A reduction in the deficit suggests that either export earnings rose, import spending fell, or net income flows improved. Analysts note that a narrower deficit can ease pressure on the rupee and give the central bank greater policy flexibility, although the gap remains a deficit and broader external‑sector trends will continue to be monitored. The RBI is expected to release the full external‑sector report later this week, which will contain detailed data on trade balance, services and capital flows for August.