India’s current account deficit narrows to $5.2 billion in August, RBI data shows
India's balance of payments recorded a significant surplus in August 2026, driven by a surge in non-resident Indian deposits and banking capital inflows. Despite this, the country continues to face a persistent current account deficit and a substantial merchandise trade gap.
Why it matters
The data highlights India's evolving external financial stability and the effectiveness of RBI measures in attracting foreign capital to offset trade imbalances.
India’s overall balance of payments (BoP) recorded a surplus of $45.4 billion in August 2026, compared with a deficit of $5.6 billion in the same month last year, as foreign currency inflows, particularly non-resident Indian (NRI) deposits, rose sharply, according to Reserve Bank of India (RBI) data.The overall BoP surplus also increased from $20.8 billion in July 2026, reflecting a sharp improvement in the country’s external financial position despite a continuing current account deficit.Banking capital inflows were a major contributor to the turnaround, reaching $64.7 billion in August, compared with an outflow of $4.7 billion in August 2025.
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