New Delhi: India’s current account turned into a deficit of USD 6.2 billion in June 2026, compared with a surplus of USD 1.2 billion in the year-ago month, primarily due to a sharp widening in the merchandise trade deficit, according to preliminary data released by the Reserve Bank of India (RBI).
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The merchandise trade deficit widened to USD 30.2 billion in June 2026 from USD 19.2 billion in June 2025. Merchandise exports increased to USD 41.2 billion from USD 35.3 billion, while imports rose at a faster pace to USD 71.4 billion from USD 54.5 billion.
The services surplus, however, increased to USD 17.9 billion in June from USD 16.2 billion a year earlier. Services exports rose to USD 36.4 billion from USD 32.1 billion, while services imports increased to USD 18.5 billion from USD 15.9 billion.
Net transfers increased to USD 11.9 billion in June 2026 from USD 10.9 billion in the year-ago period, while the net income deficit narrowed to USD 5.8 billion from USD 6.8 billion.
On the capital account, net inflows stood at USD 9.1 billion in June 2026, compared with an outflow of USD 1.6 billion in June 2025. Net foreign direct investment stood at USD 1.3 billion, while foreign portfolio investment recorded a net inflow of USD 2.5 billion during the month.
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Despite the current account deficit, India’s overall balance remained positive at USD 2.9 billion in June 2026, compared with a deficit of USD 0.4 billion in the year-ago month.
For the April-June quarter of 2026-27, the merchandise trade deficit widened to USD 85.7 billion from USD 68.9 billion in the corresponding quarter of 2025-26. During the period, the services surplus increased to USD 52.2 billion from USD 47.9 billion.
Net transfers also rose significantly to USD 41.4 billion during April-June 2026 from USD 30.9 billion a year earlier.
However, the overall balance for the quarter stood at a deficit of USD 8.1 billion, compared with a surplus of USD 4.5 billion in April-June 2025, the RBI data showed.
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