India's current account surplus reaches $4.7 billion, foreign portfolio outflows lead to BoP deficit in April: RBI Data
New Delhi, June 15
Even as India's external position improved in trade and services, capital outflows--especially portfolio investment--dragged the overall balance into deficit in April 2026, as per the data released by the Reserve Bank of India.
As per the preliminary Balance of Payments (BoP) data shared by the apex bank on Monday, India's current account turned into a surplus of USD 4.7 billion in April 2026, as against a deficit of USD 4.8 billion in the same month last year.
This improvement was driven primarily by a strong rise in services exports and higher remittance inflows. Services exports increased to USD 37.0 billion from USD 32.8 billion a year earlier, widening the services surplus to USD 18.6 billion, as per the RBI data.
In addition to that net transfers surged to USD 16.0 billion from USD 9.4 billion, which further reflects robust inflows from Indians working abroad. However, the merchandise trade deficit widened marginally as imports grew faster than exports, with exports rising to USD 44.6 billion and imports increasing to USD 72.5 billion.
On the financial side, the capital account witnessed a sharp reversal, slipping into a deficit of USD 11.3 billion compared to a surplus of USD 5.3 billion in April 2025. This was largely driven by significant outflows in foreign portfolio investment, which widened to USD 8.7 billion from USD 2.1 billion a year earlier. Banking capital also turned negative at USD 3.7 billion, while other capital flows registered a steep decline. Foreign direct investment provided some cushion, rising strongly to USD 7.4 billion from USD 1.6 billion, indicating continued interest in long-term investments in India.
Despite the improvement in the current account, the overall Balance of Payments slipped into a deficit of USD 6.6 billion in April 2026, compared to a surplus of USD 0.5 billion a year earlier. The shift highlights a key divergence in India's external position--while real economy flows such as services and remittances remain strong, financial flows have become more volatile due to foreign investor outflows.
— ANI
Reader Comments
Interesting split—our services exports are really strong, but we need to fix the trade deficit too. Imports rising faster than exports isn't sustainable long term. Hope policy focuses on manufacturing boost.
Remittances saving the day as always! NRIs are the real MVPs. But FPI outflows worth ₹8.7 billion is a big red flag—global uncertainty is real. Government should promote FDI more actively.
Current account surplus is nice, but BoP deficit means overall we're losing reserves. We need to attract more stable capital, not just hot money from FPIs. Make in India needs more push.
Services exports up 13%—IT and BPO sectors are clearly thriving. But merchandise trade deficit widening shows we're still importing too much. Need to strengthen domestic manufacturing urgently.
So on one hand our services and remittances are strong (thanks to our IT and diaspora), but on the other hand, volatile FPIs are messing up our balance. Classic India story—resilient economy, jittery markets. RBI should be prepared to intervene if needed.
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