India’s current account deficit widened to $6.2 billion in June from a surplus of $1.2 billion in the year-ago month, according to preliminary data released by the Reserve Bank of India on Friday (August 14, 2026).
The current account deficit was primarily driven by a widening merchandise trade deficit, which rose to $30.2 billion in June 2026 from $19.2 billion a year earlier.
Merchandise exports increased to $41.2 billion in June from $35.3 billion in the year-ago month, while imports rose at a faster pace to $71.4 billion from $54.5 billion.
The data from the Reserve Bank of India (RBI) also showed that the surplus in services increased to $17.9 billion in June 2026 from $16.2 billion a year earlier.
Services exports rose to $36.4 billion from $32.1 billion, while imports increased to $18.5 billion from $15.9 billion.
Net transfers also rose to $11.9 billion in June from $10.9 billion, while the net income deficit narrowed to $5.8 billion from $6.8 billion.
On the capital account front, net inflows stood at $9.1 billion in June 2026, compared with an outflow of $1.6 billion in the year-ago month.
Net foreign direct investment stood at $1.3 billion in June, while foreign portfolio investment recorded a net inflow of $2.5 billion.
The overall balance was positive at $2.9 billion in June 2026, against a deficit of $0.4 billion in June 2025.
During the April-June quarter, the merchandise trade deficit widened to $85.7 billion from $68.9 billion, while the services surplus increased to $52.2 billion from $47.9 billion.
Net transfers rose to $41.4 billion during April-June 2026 from $30.9 billion in the year-ago period.
The overall balance during the quarter was negative at $8.1 billion compared with a positive $4.5 billion in April-June 2025, the RBI data showed.
Published – August 14, 2026 10:29 pm IST
