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Informist, Wednesday, Jul. 15, 2026

 

--RBI: India May current account deficit $2 bln

--RBI: India May current account deficit $2 bln vs $0.7 bln surplus yr ago

--RBI: India May net FDI outflow $0.1 bln vs $0.9 bln inflow year ago

--RBI: May net portfolio invest outflow $4.7 bln vs $1.3 bln inflow yr ago

--RBI: India May BoP deficit $4.4 bln vs $4.4 bln surplus year ago

 

NEW DELHI – India's current account posted a deficit of $2.0 billion in May, compared with a surplus of $0.7 billion a year ago, due to a wider merchandise trade deficit, data released by the Reserve Bank of India on Wednesday showed. The current account was in a surplus of $4.7 billion in April. The Reserve Bank of India started releasing monthly data on India's balance of payments last month.

 

India's net merchandise trade deficit widened in May to $27.9 billion from $22.6 billion a year ago. Even the net services trade surplus slipped marginally to $15.7 billion in May from $15.8 billion a year ago. However, net transfers jumped 29.5% on year in May to $13.6 billion.

 

India's overall balance of payments recorded a deficit of $4.4 billion in May, compared with a surplus of $4.4 million a year ago. The capital account recorded a deficit of $2.4 billion in May, compared with a surplus of $3.7 billion a year ago, primarily due to outflows from foreign portfolio investment. 

 

Net foreign portfolio investment outflows were $4.7 billion in May compared with inflows of $1.3 billion a year ago, while net foreign direct investment outflows were $100 million in May compared with inflows of $900 million a year ago. External commercial borrowings fell to $100 million in May compared with $2.4 billion a year ago.

 

In the first two months of the current financial year (Apr-Mar), India's current account recorded a surplus of $2.8 billion, compared with a deficit of $4.1 billion in the corresponding period last year. The current account was in surplus in Apr-May due to a higher services trade surplus and a jump in net transfers.

 

Services trade surplus in Apr-May rose to $34.3 billion from $31.7 billion a year ago. Net transfers rose to $29.6 billion in Apr-May from $20.0 billion a year ago.

 

The capital account recorded a deficit of $13.8 billion in Apr-May, compared with a surplus of $9.0 billion a year ago. India's overall balance of payments recorded a deficit of $11.0 billion in Apr-May, compared with a surplus of $5.0 billion a year ago.

 

In the March quarter, India's current account surplus fell to $7.1 billion from $13.7 billion a year ago. The current account surplus was 0.7% of GDP in Jan-Mar, down from 1.4% a year ago.  End

 

US$1 = INR 96.26

 

Reported by Shweta

Edited by Saji George Titus

 

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