Current account deficit narrows to $5.2 billion in August: RBI data | Economy & Policy News

India’s current account deficit narrowed to $5.2 billion in August from $6.1 billion a year ago, aided by a lower merchandise trade deficit and higher surpluses in services trade, according to preliminary data released by the RBI on Thursday.

The net deficit in the merchandise trade account declined to $26.6 billion in August from $27.6 billion in the same month last year.

Merchandise exports rose to $44.7 billion in August from $35.1 billion a year ago, while imports increased to $71.3 billion from $62.7 billion, the RBI data showed.

The surplus in services trade increased to $16.5 billion in August from $15.6 billion a year ago. Services exports rose to $35.5 billion from $31.2 billion, while imports increased to $18.9 billion from $15.6 billion.

Net transfers, including remittances, increased to $12.8 billion in August from $12.2 billion a year ago, while the net deficit in the income account widened to $8 billion from $6.3 billion.

During April-August 2026, the current account deficit widened to $18.3 billion from $12.8 billion in the corresponding period of the previous year, according to the preliminary data on ‘Developments in India’s Balance of Payments for the Month of August 2026’.

The merchandise trade deficit increased to $146 billion during the five months from $124.7 billion a year ago, while the surplus in services trade rose to $85.8 billion from $79.9 billion in the year-ago period.

Net transfers also increased to $66.8 billion from $55.6 billion.

On the capital account, net foreign direct investment (FDI) inflows stood at $3.3 billion in August, compared with a net outflow of $0.1 billion a year ago.

Also, net foreign portfolio investment recorded an inflow of $1.7 billion, against an outflow of $2.6 billion in August 2025.

Net banking capital recorded an inflow of $64.7 billion in August, compared with an outflow of $4.7 billion a year ago.

Net non-resident Indian (NRI) deposits stood at $83 billion, against $1 billion in the same month last year.

The overall balance of payments recorded a surplus of $45.4 billion in August, compared with a deficit of $5.6 billion a year ago.

During April-August 2026, the overall balance of payments recorded a surplus of $58 billion, compared with a deficit of $0.8 billion in the corresponding period last year.