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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
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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).
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Merchandise trade deficit at US$ 86.1 billion in Q1:2026-27 was higher than US$ 68.9 billion in Q1:2025-26.
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Net services receipts increased to US$ 51.6 billion in Q1:2026-27 from US$ 47.9 billion a year ago.
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Services exports have risen on a year-on-year basis in major categories such as computer services, other business services and transportation services.
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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.
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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.
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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.
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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.
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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.
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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.
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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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