RBI FCNR(B) inflows push India toward $50 billion BoP surplus
India is on track for a $50 billion balance of payments surplus in 2026-27, thanks largely to the RBI's FCNR(B) deposit scheme bringing in big foreign currency inflows.
The scheme has already attracted $57 billion and could reach up to $85 billion by August 2026, giving India's finances a solid boost.
India's $700 billion reserves cushion risks
The current account deficit is expected to stay steady at just 1% of GDP, showing India's external finances are in good shape.
Other foreign inflows could total $80 billion-$85 billion, with hedging costs around $10.5 billion over five years, a small slice compared to India's hefty $700 billion foreign exchange reserves.
Even with global risks like oil price swings and rising bond yields, these strong reserves help keep the economy on stable ground.