**Executive Summary**
This press release by the Reserve Bank of India presents preliminary data on India's balance of payments (BoP) for the second quarter (July-September) of 2025-26. The data is compared with the corresponding period of the previous year (2024-25) and the first half of the fiscal year (April-September 2025). The document references Statements I and II and provides detailed figures in Table 1. The release date is December 01, 2025.
**Key Points / Main Content**
* **Current Account Deficit (CAD)**
* Q2:2025-26: US$ 12.3 billion (1.3% of GDP), moderated from US$ 20.8 billion (2.2% of GDP) in Q2:2024-25.
* H1:2025-26: US$ 15.0 billion (0.8% of GDP), down from US$ 25.3 billion (1.3% of GDP) in H1:2024-25.
* **Merchandise Trade**
* Merchandise trade deficit at US$ 87.4 billion in Q2:2025-26 was lower than US$ 88.5 billion in Q2:2024-25.
* **Services**
* Net services receipts increased to US$ 50.9 billion in Q2:2025-26 from US$ 44.5 billion a year ago.
* Services exports have risen on a year-on-year basis, notably in computer and business services.
* **Income Account**
* Net outgo on primary income account increased to US$ 12.2 billion in Q2:2025-26 from US$ 9.2 billion in Q2:2024-25.
* **Personal Transfers**
* Personal transfer receipts rose to US$ 38.2 billion in Q2:2025-26 from US$ 34.4 billion in Q2:2024-25.
* **Financial Account**
* Foreign direct investment (FDI) recorded a net inflow of US$ 2.9 billion in Q2:2025-26 as against a net outflow of US$ 2.8 billion in the corresponding period of 2024-25.
* Foreign portfolio investment (FPI) recorded a net outflow of US$ 5.7 billion in Q2:2025-26 as against a net inflow of US$ 19.9 billion in Q2:2024-25.
* Net inflows under external commercial borrowings (ECBs) amounted to US$ 1.6 billion in Q2:2025-26 as compared with net inflows of US$ 5.0 billion in the corresponding period a year ago.
* Non-resident deposits (NRI deposits) recorded a net inflow of US$ 2.5 billion in Q2:2025-26 as compared with US$ 6.2 billion a year ago.
* **Foreign Exchange Reserves**
* Q2:2025-26: Depletion of US$ 10.9 billion.
* H1:2025-26: Depletion of US$ 6.4 billion.
* **Net invisibles receipts**
* H1:2025-26: At US$ 141.3 billion were higher in H1:2025-26 than that of US$ 123.0 billion a year ago
**Impact Analysis**
**Government of India/RBI**
* **Impact:** The data provides insights into the health and stability of the Indian economy, which affects policy decisions related to trade, investment, and fiscal management.
* **Action Required:** Analyze the data to formulate and adjust economic policies to maintain a favorable balance of payments situation and promote sustainable economic growth.
**Investors (Domestic & Foreign)**
* **Impact:** The BoP data influences investor sentiment and decisions regarding investment in Indian markets.
* **Action Required:** Assess the trends in FDI, FPI, and current account deficit to make informed investment decisions.
**Indian Businesses**
* **Impact:** Changes in BoP indicators, such as trade balance and exchange rates, can affect the competitiveness of Indian businesses in international markets.
* **Action Required:** Monitor BoP data to adjust export and import strategies, manage currency risk, and make informed business decisions.
**Indian Citizens (Especially those working abroad)**
* **Impact:** Changes in personal transfers and remittances have a significant impact on the citizens of India.
* **Action Required:** Monitor BoP data to adjust financial strategies.
Key Entities Referenced
Balance of Payments (BoP): India's Balance of Payments, the record of all economic transactions between residents of a country and the rest of the world during a specific period, as analyzed in the press release.
Reserve Bank of India (RBI): The central bank of India, responsible for releasing data and analysis on the country's Balance of Payments.
Current Account Deficit: The measure of a country's trade balance where the value of the goods and services it imports exceeds the value of the goods and services it exports.
Foreign Direct Investment (FDI): An investment made by a company or individual in one country into business interests located in another country, in the context of the financial account of the Balance of Payments.
External Commercial Borrowings (ECBs): Commercial loans raised by eligible resident entities from recognized non-resident entities, indicating capital inflow in the balance of payments.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 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
December 01, 2025
Developments in India’s Balance of Payments during the
Second Quarter (July-September) of 2025-26
Preliminary data on India’s balance of payments (BoP) for the second quarter
(Q2), i.e., July-September 2025-26, are presented in Statements I and II.
Key Features of India’s BoP in Q2:2025-26
• India’s current account deficit moderated to US$ 12.3 billion (1.3 per cent of
GDP) in Q2:2025-26 from US$ 20.8 billion (2.2 per cent of GDP) in Q2:2024-
25 (Table 1).1,2
• Merchandise trade deficit at US$ 87.4 billion in Q2:2025-26 was lower than
US$ 88.5 billion in Q2:2024-25.
• Net services receipts increased to US$ 50.9 billion in Q2:2025-26 from US$
44.5 billion a year ago.
• Services exports have risen on a year-on-year basis in major categories such
as computer services and other business services.
• Net outgo on the primary income account, mainly reflecting payments of
investment income, increased to US$ 12.2 billion in Q2:2025-26 from US$ 9.2
billion in Q2:2024-25.
• Personal transfer receipts under secondary income account, mainly
representing remittances by Indians employed overseas, rose to US$ 38.2
billion in Q2:2025-26 from US$ 34.4 billion in Q2:2024-25.
• In the financial account, foreign direct investment (FDI) recorded a net inflow
of US$ 2.9 billion in Q2:2025-26 as against a net outflow of US$ 2.8 billion in
the corresponding period of 2024-25.
• Foreign portfolio investment (FPI) recorded a net outflow of US$ 5.7 billion in
Q2:2025-26 as against a net inflow of US$ 19.9 billion in Q2:2024-25.
• Net inflows under external commercial borrowings (ECBs) to India amounted
to US$ 1.6 billion in Q2:2025-26 as compared with net inflows of US$ 5.0
billion in the corresponding period a year ago.
• Non-resident deposits (NRI deposits) recorded a net inflow of US$ 2.5 billion
in Q2:2025-26 as compared with US$ 6.2 billion a year ago.
1 The current account deficit for Q2:2024-25 has been revised upwards from US$ 16.8 billion (1.8 per
cent of GDP) to US$ 20.8 billion (2.2 per cent of GDP) due to downward revision of exports in
Customs data. In Q1:2025-26, the current account deficit stood at US$ 2.7 billion (0.3 per cent of
GDP).
2 For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector ›
International Trade › Quarterly/Yearly.2
• There was a depletion of US$ 10.9 billion to the foreign exchange reserves (on
a BoP basis) in Q2:2025-26 as against an accretion of US$ 18.6 billion in
Q2:2024-25.
BoP During April-September 2025 (H1:2025-26)
• India’s current account deficit declined to US$ 15.0 billion (0.8 per cent of
GDP) in H1:2025-26 from US$ 25.3 billion (1.3 per cent of GDP) in H1:2024-
25 (Table 1).
• Net invisibles receipts3 at US$ 141.3 billion were higher in H1:2025-26 than
that of US$ 123.0 billion a year ago, primarily on account of net services
receipts and net personal transfers.
• Net FDI inflows increased to US$ 7.7 billion in H1:2025-26 from US$ 3.4 billion
in H1:2024-25.
• FPI recorded net outflows of US$ 4.1 billion in H1:2025-26 as against net
inflows of US$ 20.8 billion a year ago.
• In H1:2025-26, there was a depletion of US$ 6.4 billion to the foreign
exchange reserves (on a BoP basis) as against an accretion of US$ 23.8
billion in the corresponding period a year ago.
3 Net invisibles receipts comprise services, primary income and secondary income accounts.3
Table 1: Major Items of India's Balance of Payments
(US$ billion)
July – September July – September April – September 2024 April – September 2025
2024 PR 2025 P PR P
Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
A. Current
245.8 266.6 -20.8 266.7 279.0 -12.3 491.8 517.1 -25.3 523.1 538.1 -15.0
Account
1. Goods 100.6 189.2 -88.5 109.4 196.8 -87.4 215.8 364.1 -148.3 222.1 378.4 -156.3
of which:
POL 12.4 41.5 -29.2 13.4 42.9 -29.5 36.6 93.1 -56.4 30.4 92.1 -61.7
2. Services 93.4 48.9 44.5 101.6 50.7 50.9 182.0 97.7 84.3 199.0 100.2 98.8
3. Primary
16.5 25.7 -9.2 16.7 28.9 -12.2 29.2 49.2 -20.0 28.9 53.8 -25.0
Income
4. Secondary
35.3 2.8 32.4 39.0 2.6 36.5 64.8 6.0 58.8 73.1 5.6 67.5
Income
B. Capital
Account and
317.4 296.1 21.3 384.2 372.7 11.5 580.2 555.2 25.0 673.5 658.6 14.9
Financial
Account
of which:
1. Direct
21.1 24.0 -2.8 25.9 23.1 2.9 45.1 41.7 3.4 53.2 45.4 7.7
Investment
2. Portfolio
182.1 162.3 19.9 135.6 141.3 -5.7 342.0 321.2 20.8 281.9 286.1 -4.1
Investment
3. Other
107.6 79.2 28.4 205.7 198.5 7.2 180.4 146.7 33.7 315.8 301.6 14.2
Investments
of which:
NRI Deposits 28.9 22.8 6.2 23.3 20.9 2.5 52.3 42.2 10.2 47.1 41.0 6.1
ECBs to India 12.4 7.5 5.0 6.9 5.3 1.6 20.9 14.3 6.6 17.7 12.4 5.3
4. Reserve
Assets
0.0 18.6 -18.6 10.9 0.0 10.9 0.0 23.8 -23.8 10.9 4.5 6.4
[Increase (-)/
Decrease (+)]
C. Errors &
Omissions (-) 0.0 0.4 -0.4 0.8 0.0 0.8 0.3 0.0 0.3 0.1 0.0 0.1
(A+B)
PR: Partially Revised; and P: Preliminary.
Note: Total of sub-components may not tally with aggregate due to rounding off.
(Brij Raj)
Press Release: 2025-2026/1598 Chief General Manager