Executive Summary:
This press release from the Reserve Bank of India presents preliminary data on India's Balance of Payments (BoP) for the first quarter (April-June) of 2025-26. It compares the data with the corresponding period of 2024-25 and the last quarter of 2024-25, highlighting key changes in the current and financial accounts. The data reflects developments in India's international trade, investment flows, and foreign exchange reserves.
Key Points / Main Content:
* **Current Account Balance:**
* Recorded a deficit of US\$ 2.4 billion (0.2% of GDP) in Q1:2025-26, compared to a deficit of US\$ 8.6 billion (0.9% of GDP) in Q1:2024-25 and a surplus of US\$ 13.5 billion (1.3% of GDP) in Q4:2024-25.
* **Merchandise Trade:**
* The trade deficit increased to US\$ 68.5 billion in Q1:2025-26 from US\$ 63.8 billion in Q1:2024-25.
* **Services:**
* Net services receipts rose to US\$ 47.9 billion in Q1:2025-26 from US\$ 39.7 billion a year ago, driven by increased exports in business and computer services.
* **Primary Income:**
* Net outgo on the primary income account increased to US\$ 12.8 billion in Q1:2025-26 from US\$ 10.9 billion in Q1:2024-25, mainly due to investment income payments.
* **Secondary Income:**
* Personal transfer receipts (remittances) increased to US\$ 33.2 billion in Q1:2025-26 from US\$ 28.6 billion in Q1:2024-25.
* **Financial Account:**
* FDI recorded a net inflow of US\$ 5.7 billion in Q1:2025-26, compared to US\$ 6.2 billion a year ago.
* FPI recorded a net inflow of US\$ 1.6 billion in Q1:2025-26, compared to US\$ 0.9 billion in Q1:2024-25.
* Net inflows under ECBs to India amounted to US\$ 3.7 billion in Q1:2025-26, compared to US\$ 1.6 billion in the corresponding period a year ago.
* 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.
* **Foreign Exchange Reserves:**
* There was an accretion of US\$ 4.5 billion to the foreign exchange reserves on a BoP basis in Q1:2025-26, compared to an accretion of US\$ 5.2 billion in Q1:2024-25.
Impact Analysis:
* **Government and Policymakers:**
* *Impact:* Provides insights into the country's economic performance, trade dynamics, and investment flows, informing policy decisions related to trade, investment, and foreign exchange management.
* *Action Required:* Analyze the data to identify areas of concern and formulate appropriate policy responses to maintain economic stability and promote sustainable growth.
* **Businesses and Investors:**
* *Impact:* Informs investment decisions, export/import strategies, and overall business planning by providing an overview of the external economic environment.
* *Action Required:* Evaluate the trends in trade, investment, and remittances to adjust business strategies and capitalize on emerging opportunities.
* **Economists and Researchers:**
* *Impact:* Provides data for economic modeling, forecasting, and research on India's external sector.
* *Action Required:* Utilize the data for in-depth analysis of India's BoP and its implications for the economy.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and financial system.
India's Balance of Payments: A record of all economic transactions between residents of India and the rest of the world over a period of time.
April-June 2025-26: The first quarter (Q1) of the fiscal year 2025-26, the period under review for India's Balance of Payments in the press release.
Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
Foreign Portfolio Investment (FPI): The entry of funds into a country where foreigners buy stocks and bonds in the country's equity and debt markets.
External Commercial Borrowings (ECBs) to India: Commercial loans raised by eligible resident entities from recognized non-resident entities.
Non-resident deposits (NRI deposits): Deposits held in Indian banks by non-resident Indians.
Mumbai, Maharashtra: City in India where Reserve Bank of India's Central Office is located.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
September 01, 2025
Developments in India’s Balance of Payments during the
First Quarter (April-June) of 2025-26
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
• 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
• 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.
1 https://rbi.org.in/web/rbi/-/press-releases/developments-in-india-s-balance-of-payments-during-the-
fourth-quarter-january-march-of-2024-25. For longer time series data, please see: CIMS DBIE
(rbi.org.in) › Statistics › External Sector › International Trade › Quarterly/Yearly.2
• 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
264.5 256.7 7.9 289.1 285.9 3.2
Financial Account
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 (- 0.0 5.2 -5.2 0.0 4.5 -4.5
)/Decrease (+)]
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)
Press Release: 2025-2026/1013 Chief General Manager