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Preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2025-26, are presented in Statements I and II.
Key Features of India’s BoP in Q1:2025-26
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India’s current account balance recorded a deficit of US$ 2.4 billion (0.2 per cent of GDP) in Q1:2025-26 as compared with US$ 8.6 billion (0.9 per cent of GDP) in Q1:2024-25 and against a surplus of US$ 13.5 billion (1.3 per cent of GDP) in Q4:2024-25.1
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Merchandise trade deficit at US$ 68.5 billion in Q1:2025-26 was higher than US$ 63.8 billion in Q1:2024-25.
- Net services receipts increased to US$ 47.9 billion in Q1:2025-26 from US$ 39.7 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as business services and computer services.
- Net outgo on the primary income account, primarily reflecting payments of investment income, increased to US$ 12.8 billion in Q1:2025-26 from US$ 10.9 billion in Q1:2024-25.
- Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to US$ 33.2 billion in Q1:2025-26 from US$ 28.6 billion in Q1:2024-25.
- In the financial account, foreign direct investment (FDI) recorded a net inflow of US$ 5.7 billion in Q1:2025-26 as compared to a net inflow of US$ 6.2 billion a year ago.
- Foreign portfolio investment (FPI) recorded a net inflow of US$ 1.6 billion in Q1:2025-26 as compared to a net inflow of US$ 0.9 billion in Q1:2024-25.
- Net inflows under external commercial borrowings (ECBs) to India amounted to US$ 3.7 billion in Q1:2025-26, as compared to US$ 1.6 billion in the corresponding period a year ago.
- Non-resident deposits (NRI deposits) recorded a lower net inflow of US$ 3.6 billion in Q1:2025-26 than US$ 4.0 billion in Q1:2024-25.
- There was an accretion of US$ 4.5 billion to the foreign exchange reserves (on a BoP basis) in Q1:2025-26 as compared to an accretion of US$ 5.2 billion in Q1:2024-25 (Table 1).
| Table 1: Major Items of India’s Balance of Payments |
| (US$ billion) |
| |
April-June 2024 PR |
April-June 2025 P |
| Credit |
Debit |
Net |
Credit |
Debit |
Net |
| A. Current Account |
241.8 |
250.5 |
-8.6 |
256.7 |
259.1 |
-2.4 |
| 1. Goods |
111.2 |
175.0 |
-63.8 |
113.1 |
181.6 |
-68.5 |
| of which: |
|
|
|
|
|
|
| POL |
20.6 |
51.5 |
-30.9 |
17.4 |
49.3 |
-31.9 |
| 2. Services |
88.5 |
48.8 |
39.7 |
97.4 |
49.5 |
47.9 |
| 3. Primary Income |
12.7 |
23.5 |
-10.9 |
12.2 |
25.0 |
-12.8 |
| 4. Secondary Income |
29.5 |
3.2 |
26.3 |
34.0 |
3.0 |
31.0 |
| B. Capital Account and Financial Account |
264.5 |
256.7 |
7.9 |
289.1 |
285.9 |
3.2 |
| of which: |
|
|
|
|
|
|
| 1. Direct Investment |
23.9 |
17.7 |
6.2 |
27.2 |
21.5 |
5.7 |
| 2. Portfolio Investment |
159.8 |
158.9 |
0.9 |
146.3 |
144.7 |
1.6 |
| 3. Other Investments |
74.5 |
65.0 |
9.5 |
109.9 |
104.0 |
5.9 |
| of which: |
|
|
|
|
|
|
| NRI Deposits |
23.4 |
19.4 |
4.0 |
23.8 |
20.2 |
3.6 |
| ECBs to India |
8.5 |
6.8 |
1.6 |
10.7 |
7.1 |
3.7 |
| 4. Reserve Assets [Increase (-)/Decrease (+)] |
0.0 |
5.2 |
-5.2 |
0.0 |
4.5 |
-4.5 |
| C. Errors & Omissions (-) (A+B) |
0.8 |
0.0 |
0.8 |
0.0 |
0.8 |
-0.8 |
| PR: Partially Revised; and P: Preliminary. |
| Note: Total of sub-components may not tally with aggregate due to rounding off. |
(Puneet Pancholy)
Chief General Manager
Press Release: 2025-2026/1013
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