Overview
- Reserve Bank of India preliminary data released Monday show a $4.7 billion current account surplus for April 2026, reversing a $4.8 billion deficit in April 2025.
- The surplus was driven by higher net transfers of $16 billion, which include remittances, and a services surplus of $18.6 billion as exports of services rose to $37 billion.
- Merchandise trade still weakened the overall picture with exports at $44.6 billion and imports at $72.5 billion, producing a goods deficit of $27.9 billion.
- Capital flows were under pressure as foreign portfolio investors withdrew $8.7 billion and banking capital recorded net outflows, creating an $11.3 billion capital-account deficit even as net FDI rose to $7.4 billion.
- The combined effect was a $6.6 billion balance-of-payments deficit and a $6.6 billion drawdown of foreign-exchange reserves, a development that could tighten India’s buffer against sudden market swings and will be watched when final RBI numbers arrive.