The current account deficit stood at $5.2 billion in August 2026, while the overall balance recorded a surplus of $45.4 billion. RBI data also showed a $50.6 billion net capital-account balance during the month.
BKK Bureau, New Delhi | 17 October 2026 | 10:28 AM IST
India’s current account deficit widened to $18.3 billion during April-August 2026 from $12.8 billion in the year-earlier period, according to preliminary balance-of-payments data released by the Reserve Bank of India. For August alone, the current account deficit was $5.2 billion, compared with $6.1 billion in August 2025.
The merchandise trade deficit remained the largest negative component of the current account. It stood at $146 billion during April-August 2026, compared with $124.7 billion a year earlier. Merchandise exports rose to $219.9 billion from $185 billion, while imports increased to $366 billion from $309.8 billion.
Services provided a partial offset to the merchandise deficit. The net services balance increased to $85.8 billion in the first five months of the financial year from $79.9 billion in the corresponding period of 2025. Services exports rose to $180 billion from $162.3 billion, while services imports increased to $94.2 billion from $82.4 billion.
In August, the net services balance was $16.5 billion, compared with $15.6 billion in the same month of the previous year. Services exports increased to $35.5 billion from $31.2 billion, and services imports rose to $18.9 billion from $15.6 billion.
Net transfers, which include transfers recorded in the balance of payments, increased to $66.8 billion during April-August from $55.6 billion a year earlier. In August, net transfers were $12.8 billion, compared with $12.2 billion in August 2025. Net income outflows stood at $24.8 billion for April-August, compared with $23.6 billion in the year-earlier period.
The capital account recorded a net balance of $76.3 billion during April-August 2026, up from $12 billion in the corresponding period. In August, the net capital-account balance was $50.6 billion, compared with $0.5 billion in August 2025.
Net foreign direct investment into India was $13.8 billion during April-August, compared with $9.6 billion a year earlier. FDI inflows into India were $31.5 billion, while investment abroad was $17.7 billion. In August, net FDI was $3.3 billion, with $5.2 billion recorded as net FDI into India and $1.9 billion as investment abroad.
Net foreign portfolio investment remained negative for the April-August period at $3.7 billion, although the August figure was positive at $1.7 billion. The RBI table recorded $2.4 billion of net portfolio investment into India during April-August as a negative figure, while the August figure was positive at $1.9 billion.
External commercial borrowings recorded a net outflow of $28.3 billion during April-August, compared with a net inflow of $6.7 billion in the year-earlier period. The August figure was a net outflow of $22.4 billion. The release reported net external commercial borrowings to India of $7.3 billion during April-August and repayments or lending by India recorded at $35.7 billion.
Banking capital recorded a net balance of $85.8 billion during April-August, compared with a negative $0.3 billion in the year-earlier period. The August figure was $64.7 billion. The RBI separately reported net non-resident Indian deposits of $119.2 billion for April-August and $83 billion for August.
India’s overall balance was in surplus by $58 billion during April-August 2026, compared with a deficit of $0.8 billion in the year-earlier period. For August, the overall balance was positive at $45.4 billion, against a deficit of $5.6 billion in August 2025. The RBI’s monetary-movements line showed minus $58 billion for April-August and minus $45.4 billion for August; the table notes that a negative sign represents an increase in monetary movements.
The figures are preliminary for 2026 and partially revised for 2025. The RBI also noted that totals may differ from the sum of individual components because of rounding, and that errors and omissions are included under other capital.
Why it matters
The data show a wider merchandise trade gap and current account deficit alongside a substantially positive capital account and overall balance. They provide an official snapshot of India’s external-sector position during the first five months of the financial year.
Source: Reserve Bank of India
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