India's Balance of Payments Returns to Surplus in September 2026

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Balance of Payments Surplus 2026

Highlights

India's overall balance of payments recorded a surplus of U.S. $8.8 billion in September 2026, compared with a deficit of U.S. $5.6 billion in the same period last year.
The merchandise trade deficit was U.S. $30.0 billion in September 2026, while the net surplus in services was U.S. $19.2 billion and net transfers were U.S. $10.9 billion.
The net capital account inflow was U.S. $16.2 billion in September 2026, mainly including a U.S. $22.2 billion contribution from banking capital.

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

September 2026 Figures and Trends

According to data in the Reserve Bank of India's press release, India's net current account deficit for September 2026 was U.S. $7.4 billion, higher than the deficit of U.S. $5.2 billion in September 2025. Despite this, the overall balance of payments recorded a surplus of U.S. $8.8 billion, compared with a deficit of U.S. $5.6 billion a year earlier.

The net merchandise trade deficit was U.S. $30.0 billion in September 2026, down from U.S. $33.4 billion in September 2025. During this period, merchandise exports were U.S. $45.3 billion and imports were U.S. $75.3 billion. The net surplus in services was U.S. $19.2 billion, net transfers stood at U.S. $10.9 billion, and the net income item recorded a deficit of U.S. $7.6 billion.

From April to September 2026, the net current account deficit was U.S. $25.8 billion, higher than U.S. $18.0 billion in the same period last year. Over the same six months, merchandise exports were U.S. $265.3 billion and imports were U.S. $441.4 billion, while the net surplus in services reached U.S. $105.0 billion.

Capital Flows and Their Impact on the External Sector

In September 2026, the net capital account inflow was U.S. $16.2 billion, compared with a net outflow of U.S. $0.4 billion in September 2025. A net inflow of U.S. $22.2 billion in banking capital was the main contributor to this improvement, including a net inflow of U.S. $3.7 billion in NRI deposits.

However, net foreign direct investment recorded an outflow of U.S. $4.9 billion, and foreign portfolio investment saw a net outflow of U.S. $6.7 billion. Net external commercial borrowing inflows were U.S. $4.5 billion, while short-term credit to India recorded a net inflow of U.S. $1.6 billion.

From April to September 2026, the net capital account inflow was U.S. $92.6 billion, and the overall balance of payments recorded a surplus of U.S. $66.8 billion. This indicates that despite pressure on the current account, capital inflows—particularly through banking channels—are supporting India's external financing.

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