India Registers $4.7 Billion Current Account Surplus in April 2026; While Foreign Portfolio Investors Outflows Reach $8.7 Billion

India recorded a current account surplus of $4.7 billion in April 2026, reversing a $4.8 billion deficit reported in the same month last year, according to preliminary data released by the Reserve Bank of India (RBI).  

The surplus was supported by higher services earnings and stronger transfer receipts during the month. 

Trade Deficit Edges Higher 

The merchandise trade deficit widened slightly to $27.9 billion in April from $27.1 billion a year earlier.  

Merchandise exports increased to $44.6 billion, up from $38.7 billion, while imports rose to $72.5 billion from $65.8 billion, indicative of higher inbound shipments. 

Services and Transfers Offset Goods Gap 

Net services receipts stood at $18.6 billion, compared with $15.9 billion in April 2025. Services exports were recorded at $37 billion, while imports totalled $18.4 billion.  

Net transfers rose to $16 billion from $9.4 billion, and the net income deficit narrowed to $1.9 billion from $3 billion a year earlier. 

Capital Flows See Net Outflow 

The capital account recorded a net outflow of $11.3 billion, compared with a net inflow of $5.3 billion in April 2025. Net foreign direct investment increased to $7.4 billion from $1.6 billion, with gross FDI inflows reaching $11.4 billion during the month. 

Foreign portfolio investors withdrew $8.7 billion, higher than the $2.1 billion outflow seen a year ago. Banking capital also recorded a net outflow of $3.7 billion, against an inflow of $3.3 billion in the corresponding period last year. 

Overall Balance of Payments in Deficit 

The overall balance of payments registered a deficit of $6.6 billion in April 2026, compared with a surplus of $0.5 billion in April 2025.  

The RBI said monthly balance of payments data for a reference month will now be released by the 15th day, or earlier, of the second subsequent month. 

Read More: RBI Issues New Rules to Curb Mis-Selling of Financial Products; Norms Effective from January 1, 2027! 

Conclusion 

Stronger services receipts and remittances helped offset the merchandise trade gap in April, although capital outflows weighed on India's overall external account balance. 

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