India's balance of payments in June 2026 shows a current account deficit and a widening trade gap

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India balance of payments June 2026

Highlights

India's current account in June 2026 is at a deficit of USD 6.2 billion, compared to a surplus of USD 1.2 billion in June 2025.
The goods trade deficit increased from USD 19.2 billion to USD 30.2 billion, while the net services surplus reached USD 17.9 billion.
In April-June 2026, the capital account posted a deficit of USD 5.0 billion and foreign portfolio investment saw an outflow of USD 9.6 billion, resulting in an overall balance deficit of USD 8.1 billion.

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

Key Trends in Balance of Payments for June 2026

According to the Reserve Bank of India press release, India's net current account in June 2026 is at a deficit of USD 6.2 billion, compared to a surplus of USD 1.2 billion in June 2025. The main reason for this shift is the goods trade deficit rising from USD 19.2 billion to USD 30.2 billion, although exports increased from USD 35.3 billion to USD 41.2 billion and imports from USD 54.5 billion to USD 71.4 billion.

The net surplus from services reached USD 17.9 billion in June 2026, up from USD 16.2 billion a year earlier. Net transfers rose from USD 10.9 billion to USD 11.9 billion, while the net income deficit narrowed from USD 6.8 billion to USD 5.8 billion.

Quarterly Pressure and Impact of Capital Flows

During April to June 2026, the net current account deficit stood at USD 3.1 billion, compared to USD 2.9 billion a year earlier. In the same period, the goods trade deficit widened from USD 68.9 billion to USD 85.7 billion, while the net services surplus increased from USD 47.9 billion to USD 52.2 billion and net transfers rose from USD 30.9 billion to USD 41.4 billion.

The capital account recorded a net inflow of USD 9.1 billion in June 2026, with banking capital contributing USD 8.2 billion and short-term debt USD 1.6 billion. However, from April to June 2026, the capital account posted a net deficit of USD 5.0 billion, with foreign portfolio investment seeing a net outflow of USD 9.6 billion and other capital items recording a deficit of USD 10.1 billion, resulting in an overall balance deficit of USD 8.1 billion.

Our previous report discussed the sharp rise in India's merchandise trade deficit in July 2026 and double-digit growth in exports and imports, where high commodity prices and imports in select categories pushed the deficit to the USD 32.0 billion level. That article also covered current account deficit estimates for FY2027 and noted that strong capital flows and RBI measures could help keep financing manageable.

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