India’s balance of payments (BoP) recorded a surplus of $66.8 billion during April-September 2026, compared with a deficit of $6.4 billion in the corresponding period a year earlier, according to preliminary data released by the Reserve Bank of India (RBI) on November 13, 2026.
The improvement was primarily driven by a sharp increase in banking capital inflows, particularly net NRI deposits, which reached $125.6 billion during the first half of FY27. These inflows helped offset substantial outflows under external commercial borrowings and foreign portfolio investment. However, India’s current account deficit widened to $25.8 billion from $18 billion in the same period last year.
India’s Current Account Deficit Widens to $7.4 Billion in September
India’s current account deficit increased to $7.4 billion in September 2026 from $5.2 billion in September 2025. The rise was driven by higher income payments abroad and lower net transfers, despite an improvement in the merchandise trade balance.
Comparison compiled from figures stated in this article.
The merchandise trade deficit narrowed to $30 billion from $33.4 billion. Merchandise exports increased to $45.3 billion from $36.4 billion, while imports rose to $75.3 billion from $69.8 billion.
Net services receipts edged higher to $19.2 billion from $18.8 billion. Services exports increased to $39.3 billion from $36.7 billion, while services imports rose to $20.1 billion from $17.8 billion.
Net transfers, largely comprising remittances from Indians working overseas, declined to $10.9 billion from $11.5 billion. Meanwhile, net income outflows more than tripled to $7.6 billion from $2.2 billion.
For April-September 2026, the merchandise trade deficit widened to $176.1 billion from $158.1 billion a year earlier. Exports increased to $265.3 billion from $221.5 billion, but imports grew faster to $441.4 billion from $379.6 billion.
Net services receipts rose to $105 billion from $98.8 billion, while net transfers increased to $77.7 billion from $67.2 billion. Net income outflows widened to $32.4 billion from $25.8 billion, contributing to the increase in the current account deficit to $25.8 billion.
NRI Deposits Drive $66.8 Billion Balance of Payments Surplus
India’s capital account recorded net inflows of $16.2 billion in September 2026, reversing an outflow of $400 million in September 2025. Banking capital was the biggest contributor, recording net inflows of $22.2 billion compared with $700 million a year earlier.
Net NRI deposits accounted for $3.7 billion of September’s banking capital inflows, against $400 million in September 2025. Foreign portfolio investment recorded net outflows of $6.7 billion, compared with $600 million a year earlier. Net foreign direct investment outflows increased to $4.9 billion from $2.3 billion.
During April-September 2026, the capital account surplus surged to $92.6 billion from $11.6 billion in the corresponding period last year. Net NRI deposits stood at $125.6 billion, compared with $6.1 billion a year earlier.
According to The Economic Times, the deposits came through Foreign Currency Non-Resident Bank (FCNR-B) accounts under the RBI’s dollar mobilisation programme. These inflows helped offset $40.6 billion in net outflows under external commercial borrowings.
Over the six-month period, net FDI inflows stood at $8.8 billion, compared with $7.4 billion a year earlier. Net foreign portfolio investment recorded outflows of $10.4 billion, against outflows of $4.1 billion in the previous year. Net short-term credit to India increased to $7 billion from $3.9 billion, while other capital recorded net inflows of $2.6 billion against outflows of $3.1 billion.
The overall balance of payments recorded a surplus of $8.8 billion in September 2026, compared with a deficit of $5.6 billion in September 2025. For April-September 2026, the overall surplus reached $66.8 billion, against a deficit of $6.4 billion in the corresponding period a year earlier.
Major Items of India’s Balance of Payments
All figures in US$ billion. September 2026 and April-September 2026 figures are preliminary (P), while the corresponding 2025 figures are partially revised (PR).
| Item | September 2025 (PR) | September 2026 (P) | April-September 2025 (PR) | April-September 2026 (P) |
|---|---|---|---|---|
| Current Account (Net) | -5.2 | -7.4 | -18.0 | -25.8 |
| Merchandise (Net) | -33.4 | -30.0 | -158.1 | -176.1 |
| Exports | 36.4 | 45.3 | 221.5 | 265.3 |
| Imports | 69.8 | 75.3 | 379.6 | 441.4 |
| Services (Net) | 18.8 | 19.2 | 98.8 | 105.0 |
| Services Exports | 36.7 | 39.3 | 199.0 | 219.3 |
| Services Imports | 17.8 | 20.1 | 100.2 | 114.3 |
| Transfers (Net) | 11.5 | 10.9 | 67.2 | 77.7 |
| Income (Net) | -2.2 | -7.6 | -25.8 | -32.4 |
| Capital Account (Net) | -0.4 | 16.2 | 11.6 | 92.6 |
| Foreign Direct Investment (Net) | -2.3 | -4.9 | 7.4 | 8.8 |
| FDI in India (Net) | 2.5 | -0.5 | 26.1 | 31.0 |
| FDI Abroad (Net) | 4.7 | 4.4 | 18.7 | 22.1 |
| Foreign Portfolio Investment (Net) | -0.6 | -6.7 | -4.1 | -10.4 |
| FPI in India (Net) | -0.5 | -6.5 | -3.0 | -8.9 |
| FPI Abroad (Net) | 0.1 | 0.1 | 1.2 | 1.4 |
| External Commercial Borrowings (Net) | 0.6 | 4.5 | 7.2 | -40.6 |
| ECBs to India (Net) | 2.0 | 3.4 | 6.7 | 10.8 |
| ECBs by India (Net) | 1.4 | -1.1 | -0.6 | 51.4 |
| Short-term Credit to India (Net) | 2.5 | 1.6 | 3.9 | 7.0 |
| Banking Capital (Net) | 0.7 | 22.2 | 0.3 | 125.2 |
| Of which: NRI Deposits (Net) | 0.4 | 3.7 | 6.1 | 125.6 |
| Other Capital (Net) | -1.3 | -0.6 | -3.1 | 2.6 |
| Overall Balance (A+B) | -5.6 | 8.8 | -6.4 | 66.8 |
| Monetary Movements | 5.6 | -8.8 | 6.4 | -66.8 |
Note: All figures are in US$ billion. PR: Partially Revised; P: Preliminary. Monetary movements: negative indicates an increase, while positive indicates a decrease.
