India's balance of payments reached a current account surplus in April 2026

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Balance of Payments April 2026 Surplus

Highlights

In April 2026, India’s current account reached a surplus of $4.7 billion U.S. dollars, whereas in April 2025, it was in a deficit of $4.8 billion U.S. dollars.
The capital account recorded a net outflow of 11.3 billion U.S. dollars in April 2026, mainly due to an outflow of 8.7 billion U.S. dollars in foreign portfolio investment.
The combined effect of the current and capital accounts resulted in an overall balance of payments deficit of 6.6 billion U.S. dollars, compared to a surplus of 0.5 billion U.S. dollars in the previous year.

This article was translated from the original. Read the original version by our correspondent here.

Key Indicators of Balance of Payments for April 2026

According to a press release from the Reserve Bank of India, preliminary data for India’s balance of payments for April 2026 have been released, and now this data for the reference month will be published by the 15th of the second following month or earlier. Compared to a deficit of USD 4.8 billion in April 2025, the current account moves to a surplus of USD 4.7 billion in April 2026.

The net merchandise trade deficit reaches USD 27.9 billion, up from USD 27.1 billion a year earlier. During this period, exports rise from USD 38.7 billion to USD 44.6 billion, and imports increase from USD 65.8 billion to USD 72.5 billion.

The net surplus in services increases from USD 15.9 billion to USD 18.6 billion. Services exports are recorded at USD 37.0 billion and imports at USD 18.4 billion, while net transfers rise from USD 9.4 billion to USD 16.0 billion, and the net income deficit narrows from USD 3.0 billion to USD 1.9 billion.

Capital Account Pressure and Impact on the External Sector

The capital account reverses from a net inflow of USD 5.3 billion in April 2025 to a net outflow of USD 11.3 billion in April 2026. Net foreign direct investment increases from USD 1.6 billion to USD 7.4 billion, but foreign portfolio investment remains at a net outflow of USD 8.7 billion.

Banking capital shifts from a net inflow of USD 3.3 billion to a net outflow of USD 3.7 billion, while other capital remains at a net outflow of USD 7.7 billion. Net external commercial borrowing is recorded at USD 0.6 billion, and short-term loans to India at USD 0.7 billion.

Combining the current and capital accounts, the overall balance remains in a deficit of USD 6.6 billion, compared to a surplus of USD 0.5 billion in April 2025. Accordingly, an adjustment of USD 6.6 billion is recorded under monetary movements, while the RBI has also stated that errors and omissions are included under ‘other capital’.

Our previous report discussed the steps taken by the RBI and the government to attract foreign capital—such as tax exemptions for FPI on government bonds, expansion of the Fully Accessible Route, and initiatives to boost forex liquidity through FCNR(B) deposits/forex swaps. It was also mentioned that these measures could somewhat ease pressure on external financing and the balance of payments, although challenges such as portfolio outflows and rupee weakness may persist.

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