RBI: India current account deficit $5.2 billion as exports strengthen
India's current account deficit dropped to $5.2 billion in August 2026, down from $6.1 billion last year, thanks to stronger exports and a growing surplus from services, according to the Reserve Bank of India (RBI).
With merchandise exports hitting $44.7 billion and the trade deficit narrowing to $26.6 billion, things looked up for the month.
Services surplus $16.5B April-August deficit $18.3B
August also saw a bigger services trade surplus at $16.5 billion and healthy capital inflows: foreign direct investment rose by $3.3 billion and portfolio investment added another $1.7 billion.
Banking capital jumped to $64.7 billion and nonresident Indian (NRI) deposits reached an impressive $83 billion, leading to a balance of payments surplus of $45.4 billion for the month, a big turnaround from last year's deficit.
But zooming out: between April and August 2026, India's overall current account deficit actually grew to $18.3 billion (up from $12.8 billion last year). So while August was a win for India's finances, there are still bigger-picture gaps that need attention going forward.