India's August BoP surplus swings to $45.4 billion

India's balance of payments registered a surplus of $45.4 billion in August, a stark contrast to a $5.6 billion deficit a year earlier, according to data released by the Reserve Bank of India on Thursday. The nation's external standing has seen a significant improvement following the central bank's announcement of various measures to lure capital inflows in June, such as a preferential foreign-exchange deposit scheme for overseas Indians.

In August, the current account balance registered a deficit of $5.2 billion, down from a $6.1 billion deficit in the same month of 2025. Remittances from Indian workers overseas climbed to $12.8 billion in August, up from $12.2 billion in August 2025. The RBI chief indicated that India's bank liquidity surplus may decline by the end of the financial year.

Foreign portfolio investments, part of the capital account, saw inflows of $50.6 billion in August, compared to $0.5 billion a year earlier. By September 18, the central bank's capital inflow measures had attracted over $143 billion, with $133 billion coming from overseas foreign-exchange deposits. Concerns about India's balance of payments deficit have been a thorn in the rupee's side throughout 2026, as the Iran war triggered a sharp rise in crude oil prices and led to persistent capital outflows.