Reserve Bank of India · · Revised 5 series
India April–June 2026 balance of payments: $8.1bn deficit as portfolio money leaves
India's overall balance of payments with the rest of the world showed an $8.1bn (billion US dollars) deficit in April–June 2026. A year earlier it had a $4.5bn surplus. The swing came as foreign portfolio investors pulled money out.
A data update from FactIQ, written from Reserve Bank of India figures. What is FactIQ?
Key figures
- India overall balance of payments, April–June 2026
- $8.1bn deficitagainst a $4.5bn surplus in April–June 20252025-04-302026-06-30India's Monthly Balance of Payments Overall Balance in US Dollars
- India net foreign portfolio investment, April–June 2026
- -$10.9bnagainst +$1.6bn a year earlier2025-04-302026-06-30India's Monthly Balance of Payments: Net Foreign Portfolio Investment in US Dollars
- India merchandise imports, June 2026
- $71.4bnagainst $54.5bn in June 20252025-04-302026-06-30Monthly Imports of Merchandise in India's Balance of Payments, in US Dollars
- India 182-day Treasury bill implied yield at the cut-off price, 28 October auction
- 6.55%up from 6.29% on 14 October2025-10-292026-10-28Implicit Yield at the Cut-off Price for 182-Day Government of India Treasury Bill Auctions
Foreign portfolio outflows drove the deficit
The Reserve Bank of India (RBI) data cover monthly flows of money between India and the rest of the world. Net foreign portfolio investment (FPI) is money moving in and out of Indian shares and bonds. It was -$8.7bn in April, -$4.7bn in May and +$2.5bn in June. That is about -$10.9bn for the quarter, against +$1.6bn a year earlier. Net foreign direct investment (FDI) is longer-term investment in businesses. It totalled $8.6bn for the quarter, with $7.4bn in April, -$0.1bn in May and +$1.3bn in June.
Reserves covered the shortfall in April and May
The overall balance is the net result of all these flows. It was -$6.6bn in April, -$4.4bn in May and +$2.9bn in June. Monetary movements show a matching drawdown of reserves in April and May.
A larger import bill pushed the current account into deficit
The current account covers trade in goods and services, plus income and transfers. Merchandise imports ran at $71–74bn a month, compared with $54.5–65.8bn in 2025. June imports were $71.4bn, against $54.5bn a year earlier. The goods deficit was $30.2bn in June, versus $19.2bn a year earlier. A services surplus of $16–19bn and transfers of $12–16bn did not fully offset it. The current account was +$4.7bn in April, -$2.0bn in May and -$6.2bn in June. That makes a quarterly deficit of about $3.5bn.
Treasury bill yields rose and the rupee strengthened against sterling
Treasury bills are short-term government debt. At the RBI's 182-day Treasury bill auction on 28 October, the implied yield at the cut-off price was 6.55%. It was 6.29% on 14 October and about 5.54% in mid-August. In October the British pound averaged ₹126.94 (Indian rupees), down from ₹128.08 in September and ₹129.19 in August.
Source: Reserve Bank of India. See all RBI data in FactIQ.