India avoids balance of payments crisis after $33.5B FCNR(B) inflow
Business
India narrowly avoided a major balance of payments crisis in July 2026, thanks to a huge jump in nonresident Indian, or NRI, deposits under the FCNR(B) scheme.
These deposits hit $33.5 billion, helping turn what could have been an $11.8 billion deficit into a surplus and covering both a $7 billion current account gap and big outflows from banks.
NRI deposits $127B, Madan Sabnavis warns
The Reserve Bank of India's special push for NRI deposits pulled in a massive $127 billion, over a quarter of that just in July 2026, giving India some breathing room on its finances.
Still, experts like Bank of Baroda's Chief Economist Madan Sabnavis warn this is only a short-term fix, saying India needs more foreign direct investment and fewer investor outflows to keep things stable long-term.