Current account deficit narrows to US$ 5.2 billion in August
India ran a US$ 5.2 billion current account deficit in August 2026, but a US$ 83 billion inflow into NRI deposits gave an overall surplus of US$ 45.4 billion.
Official title: Developments in India’s Balance of Payments for the Month of August 2026 · Press Release 2026-2027/1335
What happened
India paid the world US$ 5.2 billion more than it earned in August 2026, against US$ 6.1 billion a year earlier. Goods exports jumped to US$ 44.7 billion from US$ 35.1 billion, while imports rose to US$ 71.3 billion, leaving a goods trade gap of US$ 26.6 billion. Services earned a net US$ 16.5 billion and transfers, mostly remittances, a net US$ 12.8 billion.
The capital account brought in a net US$ 50.6 billion, against US$ 0.5 billion in August 2025. The main reason was NRI deposits: a net US$ 83.0 billion flowed into them in a single month, compared with US$ 1.0 billion a year ago. The release does not explain this jump. Against that, external commercial borrowings saw a net outflow of US$ 22.4 billion.
Overall, India had a balance of payments surplus of US$ 45.4 billion in August, which added to reserves. From April to August 2026, the current account deficit was US$ 18.3 billion and the overall surplus US$ 58.0 billion.
What it means for you
No direct effect for most people. Large inflows from Indians abroad add to the reserves that protect the rupee. If you are an NRI, this shows many others have moved money into Indian deposits.
What it means for businesses
Exporters of goods had a strong month, with exports up about 27% over a year. Companies repaid or moved out a large amount under foreign commercial loans in August.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
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