RBI data shows current account deficit of US$5.2 billion in August 2026
Key points
- India's current account deficit was US$5.2 billion in August 2026, against US$6.1 billion in August 2025, per preliminary RBI data.
- The data matters to exporters, importers and companies with foreign borrowings; it creates no new compliance requirement.
- For April to August 2026, the current account deficit was US$18.3 billion and the overall balance a surplus of US$58.0 billion.
The Reserve Bank of India (RBI) has released preliminary balance of payments (BoP) data for August 2026. The current account showed a net deficit of US$5.2 billion, against US$6.1 billion in August 2025, while net capital account inflows of US$50.6 billion produced an overall surplus of US$45.4 billion for the month.
What has changed
The main items, in US$ billion, as published by RBI (August 2025 figures are partially revised; August 2026 figures are preliminary):
| Item | Aug 2025 | Aug 2026 | Apr–Aug 2025 | Apr–Aug 2026 |
|---|---|---|---|---|
| Current account (net) | -6.1 | -5.2 | -12.8 | -18.3 |
| Merchandise (net) | -27.6 | -26.6 | -124.7 | -146.0 |
| Merchandise exports | 35.1 | 44.7 | 185.0 | 219.9 |
| Merchandise imports | 62.7 | 71.3 | 309.8 | 366.0 |
| Services (net) | 15.6 | 16.5 | 79.9 | 85.8 |
| Transfers (net) | 12.2 | 12.8 | 55.6 | 66.8 |
| Income (net) | -6.3 | -8.0 | -23.6 | -24.8 |
| Capital account (net) | 0.5 | 50.6 | 12.0 | 76.3 |
| Foreign direct investment (net) | -0.1 | 3.3 | 9.6 | 13.8 |
| Foreign portfolio investment (net) | -2.6 | 1.7 | -3.5 | -3.7 |
| External commercial borrowings (net) | -0.1 | -22.4 | 6.7 | -28.3 |
| Banking capital (net) | -4.7 | 64.7 | -0.3 | 85.8 |
| of which NRI deposits (net) | 1.0 | 83.0 | 5.6 | 119.2 |
| Overall balance | -5.6 | 45.4 | -0.8 | 58.0 |
Some points from the table:
- Trade: merchandise exports were US$44.7 billion and imports US$71.3 billion in August 2026, leaving a merchandise deficit of US$26.6 billion. Net services receipts were US$16.5 billion.
- Year to date: for April to August 2026 the current account deficit was US$18.3 billion, against US$12.8 billion in the same period of 2025.
- Capital flows: net banking capital of US$64.7 billion, including net NRI deposits of US$83.0 billion, drove the capital account in August 2026. Net external commercial borrowings were negative at US$22.4 billion, with net borrowings by India shown at US$23.9 billion.
- Reserves: monetary movements are shown at -45.4 for August 2026, where RBI’s table uses a minus sign to denote an increase.
RBI notes that errors and omissions are included under other capital and that sub-components may not add up due to rounding. The release contains only the data table and does not explain the reasons behind any of the movements.
Who is affected
This is statistical data and creates no compliance obligation. It is followed most closely by exporters and importers, companies with foreign currency borrowings or foreign investors, banks, and anyone tracking India’s external position.
What this means for businesses
The balance of payments is one of several indicators that shape conditions for the rupee and external funding. In practice, a lower monthly current account deficit and a large overall surplus point to stronger external inflows in August 2026, led in this data by NRI deposits. Because RBI does not explain the movements and the figures are preliminary and may be revised, finance teams should treat a single month with caution and look at the trend over several releases before drawing conclusions for currency or borrowing decisions.
This update was written with AI from the official source above and automatically fact-checked against it before publishing. It is general information, not professional advice. Check the source, or talk to a Chartered Accountant, before acting on it.