India records $6.2 billion current account deficit in June 2026 as trade gap widens
What happened
According to preliminary Reserve Bank of India data, India registered a current account deficit of $6.2 billion in June 2026, reversing from a $1.2 billion surplus in June 2025. This shift was largely driven by an expanding merchandise trade deficit, which widened to $30.2 billion as imports grew to $71.4 billion against exports of $41.2 billion. Meanwhile, net services trade generated $17.9 billion and net transfers reached $11.9 billion.
Why it matters
The sharp widening of the merchandise trade deficit placed pressure on the current account. However, a capital account surplus of $9.1 billion—bolstered by $8.2 billion in net banking capital—helped offset current account outflows. As a result, the overall balance of payments recorded a $2.9 billion surplus for June 2026, leading to a $2.9 billion increase in foreign reserve assets.
Bigger picture
Across the full April–June 2026 quarter, the cumulative merchandise trade deficit expanded to $85.7 billion from $68.9 billion a year earlier. Foreign portfolio investment recorded net outflows of $9.6 billion over the quarter, pushing the cumulative capital account into a $5.0 billion deficit and creating an overall quarterly balance of payments deficit of $8.1 billion.
Watch next
Upcoming Reserve Bank of India monthly releases and data revisions will show whether rapid import expansion and foreign portfolio capital outflows persist through subsequent quarters.