India’s current account deficit narrows to $5.2 billion in August, RBI data shows
India's overall balance of payments showed a surplus of $45.4 billion in August 2026. This significant surplus is attributed to an increase in foreign currency inflows, especially from non-resident Indian deposits. The current account deficit also narrowed slightly to $5.2 billion during the same month. Foreign direct investment improved, with net inflows of $3.3 billion recorded.
In August 2026, India's current account deficit narrowed to $5.2 billion, a decline from $6.1 billion in the same month last year, according to preliminary data released by the Reserve Bank of India (RBI). The reduction was attributed to a lower merchandise trade deficit and a higher surplus in services trade. Merchandise exports increased to $44.7 billion, while imports rose to $71.3 billion.
Services trade surplus grew to $16.5 billion, up from $15.6 billion a year ago. Net transfers, including remittances, increased to $12.8 billion in August from $12.2 billion a year ago. The current account deficit widened to $18.3 billion during April-August 2026, up from $12.8 billion in the same period last year.
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