Developments in India’s Balance of Payments during the First Quarter (April-June) of 2026-27
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 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 ). Merchandise trade deficit at…
In the first quarter of the fiscal year 2026-27, India's balance of payments experienced certain notable trends. The current account deficit widened to US$ 4.2 billion, or 0.5 percent of GDP, from US$ 3.4 billion in the corresponding period of the previous year. The merchandise trade deficit expanded to US$ 86.1 billion, surpassing the previous year's figure of US$ 68.9 billion.
However, net services receipts saw an increase to US$ 51.6 billion, outpacing the prior year's US$ 47.9 billion. This growth was observed across several key categories, including computer services, other business services, and transportation services. Foreign direct investment (FDI) recorded a net inflow of US$ 6.1 billion, which was higher than the US$ 5.2 billion recorded in the previous quarter.
On the other hand, foreign portfolio investment (FPI) experienced a net outflow of US$ 9.6 billion, a significant increase from the previous year's net inflow of US$ 1.6 billion. Net outflows from non-resident deposits decreased to US$ 2.8 billion, while foreign exchange reserves declined by US$ 8.1 billion on a balance of payments basis, compared to an accretion of US$ 4.5 billion in the previous quarter.
Written by urgent.news from Reserve Bank of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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