Developments in India’s Balance of Payments for the Month of July 2026

According to preliminary data released in July 2026, India's balance of payments (BoP) showed a significant shift from the previous year. The country's current account deficit widened from a net amount of -3.2 billion US dollars in July 2025 to a more negative -7.0 billion US dollars in the first quarter of 2026. This was followed by a further deterioration to -11.2 billion US dollars over the April-July 2025 period.

The current account deficit was primarily driven by a decrease in merchandise exports, which fell from 37.4 billion US dollars in July 2025 to 45.1 billion US dollars in July 2026. Simultaneously, imports surged from 65.6 billion US dollars to 76.8 billion US dollars, exacerbating the trade imbalance. On the service sector, however, India recorded a modest improvement, with net services exports increasing from 16.4 billion US dollars to 17.6 billion US dollars, and imports rising marginally less - from 17.3 billion US dollars to 20.6 billion US dollars.

Net transfers and income also saw a slight uptick. In the capital account, India's net foreign direct investment increased by 3.5 billion US dollars, while foreign portfolio investment saw a decrease, falling from 0.1 billion US dollars to -5.5 billion US dollars. The overall balance of payments improved from a partial revision of 0.3 billion US dollars in July 2025 to a substantial gain of 20.8 billion US dollars in the first quarter of 2026.