Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2025-26, are presented in Statements I and II. Key Features of India’s BoP in Q1:2025-26
- India’s current account balance recorded a deficit of US$ 2.4 billion (0.2 per cent of GDP) in Q1:2025-26 as compared with US$ 8.6 billion (0.9 per cent of GDP) in Q1:2024-25 and against a surplus of US$ 13.5 billion (1.3 per cent of GDP) in Q4:2024-25.1
- Merchandise trade deficit at US$ 68.5 billion in Q1:2025-26 was higher than US$ 63.8 billion in Q1:2024-25.
- Net services receipts increased to US$ 47.9 billion in Q1:2025-26 from US$ 39.7 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as business services and computer services.
- Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 12.8 billion in Q1:2025-26 from US$ 10.9 billion in Q1:2024-25.
- Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 33.2 billion in Q1:2025-26 from US$ 28.6 billion in Q1:2024-25.
- In the financial account, foreign direct investment (FDI) recorded a net inflow of US$ 5.7 billion in Q1:2025-26 as compared to a net inflow of US$ 6.2 billion a year ago.
- Foreign portfolio investment (FPI) recorded a net inflow of US$ 1.6 billion in Q1:2025-26 as compared to a net inflow of US$ 0.9 billion in Q1:2024-25.
- Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 3.7 billion in Q1:2025-26, as compared to US$ 1.6 billion in the corresponding period a year ago.
- Non-resident deposits (NRI deposits) recorded a lower net inflow of US$ 3.6 billion in Q1:2025-26 than US$ 4.0 billion in Q1:2024-25.
- There was an accretion of US$ 4.5 billion to the foreign exchange reserves (on a BoP basis) in Q1:2025-26 as compared to an accretion of US$ 5.2 billion in Q1:2024-25 (Table 1).
Table 1: Major Items of India's Balance of Payments |
(US$ billion) |
| April-June 2024 PR | April-June 2025 P |
Credit | Debit | Net | Credit | Debit | Net |
A. Current Account | 241.8 | 250.5 | -8.6 | 256.7 | 259.1 | -2.4 |
1. Goods | 111.2 | 175.0 | -63.8 | 113.1 | 181.6 | -68.5 |
of which: | | | | | | |
POL | 20.6 | 51.5 | -30.9 | 17.4 | 49.3 | -31.9 |
2. Services | 88.5 | 48.8 | 39.7 | 97.4 | 49.5 | 47.9 |
3. Primary Income | 12.7 | 23.5 | -10.9 | 12.2 | 25.0 | -12.8 |
4. Secondary Income | 29.5 | 3.2 | 26.3 | 34.0 | 3.0 | 31.0 |
B. Capital Account and Financial Account | 264.5 | 256.7 | 7.9 | 289.1 | 285.9 | 3.2 |
of which: | | | | | | |
1. Direct Investment | 23.9 | 17.7 | 6.2 | 27.2 | 21.5 | 5.7 |
2. Portfolio Investment | 159.8 | 158.9 | 0.9 | 146.3 | 144.7 | 1.6 |
3. Other Investments | 74.5 | 65.0 | 9.5 | 109.9 | 104.0 | 5.9 |
of which: | | | | | | |
NRI Deposits | 23.4 | 19.4 | 4.0 | 23.8 | 20.2 | 3.6 |
ECBs to India | 8.5 | 6.8 | 1.6 | 10.7 | 7.1 | 3.7 |
4. Reserve Assets [Increase (-)/Decrease (+)] | 0.0 | 5.2 | -5.2 | 0.0 | 4.5 | -4.5 |
C. Errors & Omissions (-) (A+B) | 0.8 | 0.0 | 0.8 | 0.0 | 0.8 | -0.8 |
PR: Partially Revised; and P: Preliminary. |
Note: Total of sub-components may not tally with aggregate due to rounding off. |
(Puneet Pancholy)
Chief General Manager Press Release: 2025-2026/1013 |
