India recorded a current account deficit of $7 billion in July 2026, as imports exceeded merchandise exports, according to preliminary balance of payments data released by the Reserve Bank of India on Monday. The current account was in deficit of $3.2 billion in July 2025. However, the balance of payments (BoP) surplus surged to $20.8 billion in July 2026, as against a surplus of $0.3 billion in July 2025.
In the April-July period of FY27, India’s current account deficit was $11.2 billion, widening from $6.6 billion during the same period of the previous financial year, mainly due to an expanding merchandise deficit.
In July, the merchandise deficit widened to $31.7 billion from $28.2 billion a year ago. Exports rose to $45.1 billion from $37.4 billion, while imports surged to $76.8 billion from $65.6 billion during the same period last year. In the April-July period of FY27, the merchandise deficit widened to $117.8 billion compared with a deficit of $97.1 billion in April-July FY26.
Net services exports were slightly up at $17.6 billion, while net transfers — supported by remittances — rose to $13.2 billion from $12.6 billion a year ago.
On the capital account, there was a net inflow of $27.7 billion in July, compared with inflows of $3.5 billion a year ago. This was mainly due to a net banking capital inflow of $18.4 billion compared with $6 billion. The net NRI deposit inflow stood at $33.5 billion in July 2026 compared with $1 billion in the same period last year.
Foreign portfolio investment recorded a net inflow of $4.1 billion, compared with a net outflow of $2.5 billion in July last year. Net foreign direct investment (FDI) recorded an inflow of $7.3 billion in the month, compared with an inflow of $4.5 billion in the same month last year.
External commercial borrowings (ECBs) recorded a net outflow of $2.3 billion, compared with inflows of $1.4 billion a year ago. Short-term credit to India registered a net inflow of $1.8 billion.
Overall, India’s balance of payments (BoP) was in surplus of $20.8 billion in July, compared with a surplus of $0.3 billion in the same period last year.
The surplus was $12.7 billion in the April-July period of FY27, compared with a surplus of $4.8 billion in the same period last financial year.
