Document title: Developments in India's Balance of Payments for the Month of July 2026
Issuing Authority: Not specified
Reference Number: N/A
Date: 15 September 2026
External sector and currency
India's current account for July 2026 recorded a net deficit of $7.0 billion, widening from a $3.2 billion deficit in July 2025. The merchandise (goods) component showed a net deficit of $31.7 billion, driven by exports of $45.1 billion (up 21% year‑on‑year) and imports of $76.8 billion (up 17% year‑on‑year). Services contributed a net surplus of $17.6 billion, with exports of $38.3 billion and imports of $20.6 billion. Transfers posted a net inflow of $13.2 billion, while income was a net outflow of $6.1 billion.
Capital markets and flows
The capital account swung to a strong positive net of $27.7 billion in July 2026, compared with $3.5 billion in July 2025. Foreign Direct Investment (FDI) net inflows rose to $7.3 billion, of which $10.7 billion was invested in India and $3.4 billion abroad. Foreign Portfolio Investment (FPI) turned positive with a net inflow of $4.1 billion, after a net outflow of $2.5 billion a year earlier. External Commercial Borrowings (ECBs) posted a net outflow of $2.3 billion, reversing a $1.4 billion inflow in the prior year. Short‑term credit to India increased to $1.8 billion. Banking capital surged to $18.4 billion, largely due to NRI deposits which rose sharply to $33.5 billion. Other capital remained negative at $-1.6 billion.
Overall balance and monetary movements
Combining current and capital accounts, the overall balance for July 2026 showed a surplus of $20.8 billion, a marked improvement from a modest $0.3 billion surplus in July 2025. Correspondingly, monetary movements recorded a net outflow of $20.8 billion, mirroring the overall surplus figure.
The data indicate a significant improvement in India's external position in July 2026, driven by stronger capital inflows and a widening trade deficit offset by robust services and transfer surpluses. This preliminary BoP snapshot suggests enhanced foreign investment confidence and a substantial net capital inflow during the period.