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Developments in India’s Balance of Payments during the First Quarter (April-June) of 2026-27

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Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1) of 2026-27, i.e., April-June 2026, are presented in Statements I and II.

Key Features of India’s BoP in Q1:2026-27

  • 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 (Table 1).

  • Merchandise trade deficit at US$ 86.1 billion in Q1:2026-27 was higher than US$ 68.9 billion in Q1:2025-26.

  • Net services receipts increased to US$ 51.6 billion in Q1:2026-27 from US$ 47.9 billion a year ago.

  • Services exports have risen on a year-on-year basis in major categories such as computer services, other business services and transportation services.

  • Net outgo on the primary income account, mainly reflecting payments of investment income, decreased to US$ 10.5 billion in Q1:2026-27 from US$ 13.3 billion in Q1:2025-26.

  • Personal transfer receipts under secondary income account, mainly representing remittances by Indians employed overseas, rose to US$ 42.9 billion in Q1:2026-27 from US$ 33.2 billion in Q1:2025-26.

  • In the financial account, foreign direct investment (FDI) recorded a net inflow of US$ 6.1 billion in Q1:2026-27, higher than US$ 5.2 billion in Q1:2025-26.

  • Foreign portfolio investment (FPI) recorded a net outflow of US$ 9.6 billion in Q1:2026-27 as against a net inflow of US$ 1.6 billion in Q1:2025-26.

  • Non-resident deposits (NRI deposits) recorded a net inflow of US$ 2.8 billion in Q1:2026-27 as compared to US$ 3.6 billion in Q1:2025-26.

  • Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 3.3 billion in Q1:2026-27 as compared to US$ 4.4 billion in Q1:2025-26.

  • Foreign exchange reserves depleted by US$ 8.1 billion (on a BoP basis) in Q1:2026-27 as against an accretion of US$ 4.5 billion in Q1:2025-26 (Table 1).

Table 1: Major Items of India’s Balance of Payments
(US$ billion)
  April-June 2025 PR April-June 2026 P
  Credit Debit Net Credit Debit Net
A. Current Account 256.4 259.7 -3.4 294.9 299.2 -4.2
1. Goods 112.7 181.6 -68.9 132.0 218.0 -86.1
    of which:            
      POL 17.0 49.2 -32.2 23.0 60.6 -37.6
2. Services 97.4 49.5 47.9 106.2 54.6 51.6
3. Primary Income 12.2 25.5 -13.3 13.0 23.5 -10.5
4. Secondary Income 34.0 3.1 30.9 43.8 3.0 40.8
B. Capital Account and Financial Account 257.0 252.3 4.7 254.6 252.1 2.6
    of which:            
1. Direct Investment 27.8 22.6 5.2 29.7 23.6 6.1
2. Portfolio Investment 146.3 144.7 1.6 134.4 144.0 -9.6
3. Other Investments 77.2 69.3 7.9 72.7 65.0 7.7
    of which:            
      NRI Deposits 23.8 20.2 3.6 24.3 21.5 2.8
      ECBs to India 10.8 6.4 4.4 10.2 7.0 3.3
4. Reserve Assets
[‘-’: Increase ; ‘+’: Decrease]		 0.0 4.5 -4.5 8.1 0.0 8.1
C. Errors & Omissions (-) (A+B) 0.0 1.4 -1.4 1.6 0.0 1.6
PR: Partially Revised; and P: Preliminary.
Note: Total of sub-components may not tally with aggregate due to rounding off.

(Brij Raj)           
Chief General Manager

Press Release: 2026-2027/1015



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