The Reserve Bank of India (RBI) released the preliminary data on India’s Balance of Payments (BoP) for May 2026. The data showed a current account deficit of US$2.0 billion in May 2026, compared with a current account surplus of US$0.7 billion in May 2025.
India’s merchandise trade deficit widened to US$27.9 billion in May 2026 from US$22.6 billion a year earlier. Merchandise exports increased to US$46.1 billion from US$38.7 billion, while imports rose to US$74.0 billion from US$61.3 billion during the same period.
The services account posted a net surplus of US$15.7 billion in May 2026, slightly lower than US$15.8 billion in May 2025. Services exports stood at US$33.4 billion, while services imports were US$17.6 billion. Net transfers increased to US$13.6 billion from US$10.5 billion, while net income remained in deficit at US$3.4 billion, compared with US$3.0 billion a year earlier.
The capital account recorded a net deficit of US$2.4 billion in May 2026, compared with a net surplus of US$3.7 billion in May 2025. Net foreign direct investment (FDI) stood at US$0.1 billion in deficit, while net foreign portfolio investment (FPI) recorded a US$4.7 billion outflow. Net external commercial borrowings were US$0.1 billion, short-term credit to India recorded a net inflow of US$3.2 billion, banking capital showed a net outflow of US$1.1 billion, and other capital registered a net inflow of US$0.2 billion.
Overall, India’s Balance of Payments recorded a deficit of US$4.4 billion in May 2026, compared with a surplus of US$4.4 billion in May 2025. As a result, monetary movements showed an increase of US$4.4 billion in May 2026, versus a decrease of US$4.4 billion in the corresponding month last year. The RBI said the figures are preliminary.
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