According to RBI data, India recorded a current account deficit of $2 billion in May 2026. This was due to the increasing trade deficit, which reached $27.9 billion. However, the country recorded a current account surplus of $2.8 billion in the April–May period.
New Delhi [भारत]July 16 (ANI): India recorded a current account deficit of US$2 billion in May 2026, according to preliminary balance of payments (BoP) data from the Reserve Bank of India (RBI). This was because the widening trade deficit neutralized strong net income from services and transfers.
Despite the monthly deficit, the country recorded a current account surplus of US$2.8 billion during the period April–May 2026.
trade deficit increased
RBI data showed that the trade deficit increased to $27.9 billion in May 2026 from $22.6 billion in the same month last year. During the same period, exports of goods increased from $38.7 billion to $46.1 billion, while imports increased from $61.3 billion to $74 billion.
Net services receipts were almost unchanged at $15.7 billion in May 2026, compared with $15.8 billion a year earlier. Net transfers increased from $10.5 billion to $13.6 billion, while net income outflow increased from $3 billion to $3.4 billion by May 2025.
During April-May 2026, the current account recorded a surplus of $2.8 billion, compared to a deficit of $4.1 billion in the same period last year. Over the two-month period, the trade deficit increased to $55.9 billion, while net receipts from services increased to $34.3 billion and net transfers increased to $29.6 billion.
Foreign investment out of capital account too
On the capital account, India recorded a net capital outflow of US$2.4 billion in May 2026. Net foreign direct investment (FDI) stood at negative $0.1 billion, while foreign portfolio investment (FPI) recorded a net outflow of $4.7 billion during the month. However, net short-term credit to India remained positive at $3.2 billion.
Deficit in overall balance of payments also
According to the RBI, the overall balance of payments recorded a deficit of $4.4 billion in May 2026, while there was a surplus of $4.4 billion in May 2025. For the period April-May 2026, the overall balance showed a deficit of $11 billion, compared to a surplus of $5 billion in the same period last year. (ANI)
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