Document title: Developments in India's Balance of Payments for the Month of June 2026

Issuing authority: Reserve Bank of India (RBI)

Reference number: Press Release: 2026-2027/894

Date: August 14, 2026

External Sector and Currency

The current account for June 2026 recorded a net deficit of $6.2 billion, a sharp deterioration from the $1.2 billion surplus in June 2025. Merchandise trade showed a net deficit of $30.2 billion, widening from $19.2 billion a year earlier. Export earnings rose to $41.2 billion, while import outlays increased to $71.4 billion. Services contributed a net surplus of $17.9 billion, up from $16.2 billion, with exports of $36.4 billion and imports of $18.5 billion. Transfers posted a net inflow of $11.9 billion, compared with $10.9 billion previously. Income remained negative at $5.8 billion, an improvement over the $6.8 billion deficit in June 2025.

Capital Account and Financial Flows

The capital account turned positive, posting a net surplus of $9.1 billion in June 2026, reversing the $1.6 billion deficit recorded in June 2025. Foreign Direct Investment (FDI) net inflows were $1.3 billion, down from $2.3 billion, with Indian‑based FDI of $3.5 billion and outbound FDI of $2.1 billion. Foreign Portfolio Investment (FPI) net inflows were $2.5 billion, a slight rise from $2.4 billion, but the overseas component turned negative at $-9.6 billion for the April‑June 2026 period. External Commercial Borrowings (ECBs) showed a marginal net outflow of $0.5 billion. Short‑term credit to India increased to $1.6 billion. Banking capital recorded a substantial net inflow of $8.2 billion, up from a $3.2 billion outflow, with NRI deposits contributing $1.4 billion. Other capital remained negative at $-4.0 billion.

Overall Balance and Monetary Movements

Combining current and capital accounts, the overall balance of payments posted a $2.9 billion surplus in June 2026, a turnaround from the $0.4 billion deficit in June 2025. Monetary movements, reflecting changes in RBI's monetary operations, were recorded as a decrease of $2.9 billion, opposite to the $0.4 billion increase noted a year earlier.

The BoP data indicate a widening trade deficit offset by strong capital inflows, particularly in banking capital, leading to an overall surplus for the month. This preliminary information will be refined in subsequent revisions.