India posts $4.7 bn current account surplus in April; FPI outflows hit $8.7 bn

India recorded a current account surplus of $4.7 billion in April 2026, compared with a deficit of $4.8 billion a year earlier, even as net foreign portfolio investment (FPI) outflows widened to $8.7 billion and pushed the overall balance of payments into a deficit, according to preliminary data released by the Reserve Bank of India (RBI) on Monday.

The surplus came despite a wider merchandise trade deficit of $27.9 billion in April 2026, compared with $27.1 billion a year earlier. Merchandise exports rose to $44.6 billion from $38.7 billion, while imports increased to $72.5 billion from $65.8 billion.

Net services exports strengthened to $18.6 billion during the month, up from $15.9 billion in April 2025. Services exports stood at $37 billion, while imports were $18.4 billion.


Net transfers, which largely comprise remittances, rose sharply to $16 billion from $9.4 billion a year ago. Meanwhile, the net income deficit narrowed to $1.9 billion from $3 billion.

On the capital account, net foreign direct investment (FDI) increased to $7.4 billion in April 2026 from $1.6 billion a year earlier. Gross FDI inflows into India more than doubled to $11.4 billion from $5 billion.

However, net foreign portfolio investment (FPI) recorded an outflow of $8.7 billion during the month, compared with an outflow of $2.1 billion in April 2025. Banking capital also turned negative, registering a net outflow of $3.7 billion against an inflow of $3.3 billion a year ago.

As a result, the capital account recorded a deficit of $11.3 billion in April 2026, compared with a surplus of $5.3 billion in April 2025.

India's overall balance of payments showed a deficit of $6.6 billion during the month, compared with a surplus of $0.5 billion a year earlier. The RBI's monetary movements data indicated a drawdown of $6.6 billion in foreign exchange reserves during April 2026.

The RBI said that, going forward, India's monthly balance of payments data for a reference month will be released by the 15th day, or earlier, of the second subsequent month.