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India's current account deficit widens to $7 billion in July: RBI
Sep-16-2026

Reserve Bank of India (RBI) in its preliminary data has showed that India's current account deficit widened to $7 billion in July 2026 from $3.2 billion in the year-ago month, primarily driven by higher merchandise trade deficit, which rose to $31.7 billion in July 2026 from $28.2 billion in the same month last year. Merchandise exports rose to $45.1 billion in July from $37.4 billion in the year-ago month, but imports increased at a faster pace to $76.8 billion from $65.6 billion. The current account deficit stood at $11.2 billion during April-July 2026, compared with $6.6 billion in the corresponding period a year earlier.

The RBI data also showed that net services receipts increased to $17.6 billion in July 2026 from $16.4 billion a year earlier. Services exports stood at $38.3 billion while imports totalled $20.6 billion during the month under review. Net transfers also increased to $13.2 billion in July 2026 from $12.6 billion, while net income outgo widened to $6.1 billion from $4 billion. The capital account recorded a net inflow of $27.7 billion in July 2026, sharply higher than $3.5 billion in the year-ago month. During April-July 2026, the capital account recorded a net inflow of $23.9 billion as against $11.4 billion a year earlier. 

According to the data, net foreign direct investment inflows also strengthened to $7.3 billion in July from $4.5 billion a year earlier. Net foreign portfolio investment also turned positive at $4.1 billion in July, compared with an outflow of $2.5 billion a year earlier. The overall balance stood at a surplus of $20.8 billion in July 2026, compared with $0.3 billion in the year-ago month. For April-July 2026, the overall balance stood at $12.7 billion, against $4.8 billion in the year-earlier period. 


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