The Reserve Bank of India (RBI) in its preliminary data has showed that India’s current account deficit stood at $6.2 billion in June from a surplus of $1.2 billion in the year-ago month. The current account deficit was primarily driven by a widening merchandise trade deficit, which rose to $30.2 billion in June 2026 from $19.2 billion a year earlier. Merchandise exports increased to $41.2 billion in June from $35.3 billion in the year-ago month, while imports rose at a faster pace to $71.4 billion from $54.5 billion. The RBI data also showed that the surplus in services increased to $17.9 billion in June 2026 from $16.2 billion a year earlier. Services exports rose to $36.4 billion from $32.1 billion, while imports increased to $18.5 billion from $15.9 billion. Net transfers also rose to $11.9 billion in June from $10.9 billion, while net income deficit narrowed to $5.8 billion from $6.8 billion. On the capital account front, net inflows stood at $9.1 billion in June 2026, compared with an outflow of $1.6 billion in the year-ago month. Net foreign direct investment stood at $1.3 billion in June, while foreign portfolio investment recorded a net inflow of $2.5 billion. The overall balance was positive at $2.9 billion in June 2026, against a deficit of $0.4 billion in June 2025.

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