India’s balance of payments surplus reached $20.8 billion in July 2026, RBI data shows
What happened
Preliminary Reserve Bank of India data shows India recorded an overall balance of payments surplus of $20.8 billion in July 2026, up from $0.3 billion a year earlier. A $27.7 billion capital account surplus—fueled by $33.5 billion in net non-resident Indian deposits and $18.4 billion in net banking capital—drove the expansion, offsetting a current account deficit that widened to $7.0 billion.
Why it matters
Surging capital inflows are insulating India’s external accounts despite a widening trade gap. Strong non-resident deposits and net banking capital cushion against elevated import costs, supporting foreign exchange reserve accumulation and broader macroeconomic stability.
Bigger picture
Cumulative data for April–July 2026 reflects the same underlying pattern. A $117.8 billion merchandise trade gap widened the four-month current account deficit to $11.2 billion, but total net capital flows of $23.9 billion preserved a positive overall balance of $12.7 billion.
Watch next
Subsequent RBI balance of payments disclosures will show whether net non-resident deposit inflows remain at elevated levels to continue offsetting persistent trade deficits.