India's current account surplus reaches $4.7 billion, foreign portfolio outflows lead to BoP deficit in April: RBI Data

As per the preliminary Balance of Payments (BoP) data shared by the apex bank on Monday, India's current account turned into a surplus of USD 4.7 billion in April 2026, as against a deficit of USD 4.8 billion in the same month last year.

This improvement was driven primarily by a strong rise in services exports and higher remittance inflows. Services exports increased to USD 37.0 billion from USD 32.8 billion a year earlier, widening the services surplus to USD 18.6 billion, as per the RBI data.

In addition to that net transfers surged to USD 16.0 billion from USD 9.4 billion, which further reflects robust inflows from Indians working abroad. However, the merchandise trade deficit widened marginally as imports grew faster than exports, with exports rising to USD 44.6 billion and imports increasing to USD 72.5 billion.

On the financial side, the capital account witnessed a sharp reversal, slipping into a deficit of USD 11.3 billion compared to a surplus of USD 5.3 billion in April 2025. This was largely driven by significant outflows in foreign portfolio investment, which widened to USD 8.7 billion from USD 2.1 billion a year earlier. Banking capital also turned negative at USD 3.7 billion, while other capital flows registered a steep decline. Foreign direct investment provided some cushion, rising strongly to USD 7.4 billion from USD 1.6 billion, indicating continued interest in long-term investments in India.

Despite the improvement in the current account, the overall Balance of Payments slipped into a deficit of USD 6.6 billion in April 2026, compared to a surplus of USD 0.5 billion a year earlier. The shift highlights a key divergence in India's external position--while real economy flows such as services and remittances remain strong, financial flows have become more volatile due to foreign investor outflows. (ANI)