Developments in India’s Balance of Payments for the Month of September 2026
Preliminary data on India’s balance of payments (BoP) for September 2026 are presented in the following table. Major Items of India's Balance of Payments (US$ billion) Item September 2025 PR September 2026 P April-September 2025 PR April-September 2026 P A. Current Account (Net) [A.1 to A.4] -5.2 -7.4 -18.0 -25.8 A.1 Merchandise (Net) [a-b] -33.4 -30.0 -158.1 -176.1 a. Exports 36.4 45.3 221.5…
In September 2026, India's balance of payments (BoP) reported a significant net deficit of -8.8 billion US dollars, up from -5.6 billion in the previous month. The current account, encompassing merchandise, services, transfers, and income, showed an aggregated deficit of -25.8 billion US dollars, a stark increase from -18.0 billion in September 2025.
This decline was primarily driven by a worsening trade balance, with exports decreasing from 221.5 billion US dollars to 176.1 billion, while imports surged from 379.6 billion to 441.4 billion US dollars.
Services, both exports and imports, saw a modest increase of 19.2 billion to 105.0 billion US dollars, offsetting some of the trade deficit. However, transfers and income contributed negatively to the balance, with a combined deficit of 32.4 billion US dollars, up from 25.8 billion in the previous month. This was primarily due to a sharp decline in income from abroad, falling from 25.8 billion to 32.4 billion US dollars.
On the capital account, foreign direct investment (FDI) showed a slight inflow of 8.8 billion US dollars, an improvement from a deficit of 7.6 billion US dollars in September 2025. Yet, foreign portfolio investment (FPI) saw a sharp decline of -10.4 billion US dollars, down from -6.7 billion in the previous month. Foreign portfolio investment netted an annual deficit of -32.4 billion US dollars, significantly higher than -25.8 billion in the previous reporting period.
The overall balance of payments, calculated by adding the current and capital account balances, showed a substantial net surplus of 66.8 billion US dollars in September 2026, a sharp contrast to the deficit of -66.8 billion US dollars in the previous month. Monetarily, there was a significant increase in monetary movements, with an increase of 66.8 billion US dollars, indicating a pumping of liquidity into the economy.
This drastic shift in the BoP underscores the changing dynamics of India's economic relations with global partners.
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.
