India registered an overall balance of payments deficit of $6.6 billion in April, according to preliminary data published by the Reserve Bank of India. That outcome contrasts with a $500 million surplus posted in April of the prior year.
The central bank said it will begin issuing balance of payments data on a monthly basis, with a lag of 45 days or less, replacing the previous quarterly release cadence.
Current account and transfers
The country's current account returned to surplus in April, registering $4.7 billion, compared with a deficit of $4.8 billion in April 2025. Net transfers - a category that encompasses remittances from Indians working abroad - climbed to $16 billion in April from $9.4 billion a year earlier.
Capital account and investment flows
The capital account recorded an outflow of $11.3 billion in April 2026, a marked reversal from an inflow of $5.3 billion in the same month last year. Within capital flows, net foreign direct investment in April reached $7.4 billion, up from $1.6 billion a year ago.
Data released last week for the January-March quarter of fiscal 2026 showed a surplus in both the current account and the overall balance of payments for that quarter. Officials attributed that quarterly surplus to stronger services earnings, rising worker remittances, and foreign exchange swaps executed by the central bank.
Policy step to bolster balances
The Reserve Bank's recent initiative to attract dollars from non-resident Indians through a subsidized swap mechanism is expected to support the external balances. Some economists, responding to that policy and recent flows, now anticipate a balance of payments surplus for the 2026-27 fiscal year.
While April's headline deficit reflects a swing in the capital account, the underlying data show offsetting strengths in the current account and direct investment. The move to monthly reporting will provide more frequent visibility into these components going forward.
Note: Figures reported here are based on the preliminary balance of payments release by the Reserve Bank of India and reflect the data points provided in that release.