**Executive Summary**
This document presents preliminary data on India's Balance of Payments (BoP) for the third quarter (October-December) of 2025-26. Key findings include an increased current account deficit and significant shifts in foreign investment flows. The data covers the period up to March 02, 2026.
**Key Points / Main Content**
**Third Quarter (October-December) 2025-26 BoP Highlights:**
* **Current Account Deficit:** Increased to US$ 13.2 billion (1.3% of GDP) from US$ 11.3 billion (1.1% of GDP) in the previous year.
* **Merchandise Trade Deficit:** Widened to US$ 93.6 billion from US$ 79.3 billion.
* **Services Receipts:** Net receipts rose to US$ 57.5 billion from US$ 51.2 billion, driven by growth in computer and business services exports.
* **Primary Income:** Net outgo decreased to US$ 12.2 billion from US$ 16.4 billion, reflecting lower investment income payments.
* **Secondary Income:** Personal transfer receipts (remittances) increased to US$ 36.9 billion from US$ 35.1 billion.
* **Financial Account:**
* Foreign Direct Investment (FDI) recorded a net outflow of US$ 3.7 billion, higher than US$ 2.8 billion.
* Foreign Portfolio Investment (FPI) recorded a net outflow of US$ 0.2 billion, significantly lower than US$ 11.4 billion.
* Non-resident Deposits (NRI deposits) saw a net inflow of US$ 5.1 billion, up from US$ 3.1 billion.
* External Commercial Borrowings (ECBs) registered a net inflow of US$ 3.3 billion, down from US$ 4.4 billion.
* **Foreign Exchange Reserves:** Depleted by US$ 24.4 billion, a smaller depletion compared to US$ 37.7 billion in the prior year.
**April-December 2025 BoP Highlights:**
* **Current Account Deficit:** Moderated to US$ 30.1 billion (1.0% of GDP) from US$ 36.6 billion (1.3% of GDP).
* **Net Invisibles Receipts:** Increased to US$ 221.5 billion from US$ 191.0 billion, due to higher net services receipts and personal transfers.
* **Net FDI Inflows:** Rose to US$ 3.0 billion from US$ 0.6 billion.
* **FPI:** Recorded net outflows of US$ 4.3 billion, compared to net inflows of US$ 9.4 billion.
* **Foreign Exchange Reserves:** Depleted by US$ 30.8 billion, an increase from the US$ 13.8 billion depletion in the previous year.
**Impact Analysis**
**Current Account Deficit**
* **Impact:** Businesses involved in imports will face higher costs due to the widening merchandise trade deficit. Remittance recipients will benefit from increased personal transfer receipts.
* **Action Required:** Businesses may need to review import strategies and pricing. Individuals receiving remittances can anticipate higher inflows.
**Foreign Investment Flows**
* **Impact:** A higher net outflow of FDI indicates less foreign investment entering the country. Lower net outflows of FPI suggest improved investor sentiment towards Indian equities. Increased NRI deposits provide a stable source of funding. Reduced net inflows of ECBs could limit corporate borrowing from external sources.
* **Action Required:** Businesses seeking foreign capital may need to explore alternative funding mechanisms. Investors in foreign markets should note the shift in FPI sentiment. Financial institutions managing NRI deposits will see increased liabilities. Companies relying on ECBs should assess alternative financing.
**Foreign Exchange Reserves**
* **Impact:** A depletion of foreign exchange reserves reduces the country's capacity to manage external shocks and stabilize the currency.
* **Action Required:** The Reserve Bank of India will monitor reserve levels and consider appropriate policy measures if necessary.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing currency, managing monetary policy, and regulating financial institutions. Its press release outlines the country's balance of payments.
India's Balance of Payments: The policy's primary subject, detailing the record of all economic transactions between India and the rest of the world during a specific period.
Statements I and II: Referenced policy documents containing preliminary data on India's balance of payments, essential for understanding the quantitative aspects of the policy's scope.
Table 1: Major Items of India's Balance of Payments: A key component of the policy document, providing detailed figures on various components of India's balance of payments, crucial for impact analysis.
Chief General Manager: The individual issuing the press release, indicating the authority and source of the information presented regarding India's balance of payments.
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
March 02, 2026
Developments in India’s Balance of Payments during the
Third Quarter (October-December) of 2025-26
Preliminary data on India’s balance of payments (BoP) for the third quarter
(Q3), i.e., October-December 2025-26, are presented in Statements I and II.
Key Features of India’s BoP in Q3:2025-26
• India’s current account deficit increased to US$ 13.2 billion (1.3 per cent of
GDP) in Q3:2025-26 from US$ 11.3 billion (1.1 per cent of GDP) in Q3:2024-
25 (Table 1).1,2
• Merchandise trade deficit at US$ 93.6 billion in Q3:2025-26 was higher than
US$ 79.3 billion in Q3:2024-25.
• Net services receipts increased to US$ 57.5 billion in Q3:2025-26 from US$
51.2 billion a year ago.
• Services exports have risen on a y-o-y 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, decreased to US$ 12.2 billion in Q3:2025-26 from US$
16.4 billion in Q3:2024-25.
• Personal transfer receipts under secondary income account, mainly
representing remittances by Indians employed overseas, rose to US$ 36.9
billion in Q3:2025-26 from US$ 35.1 billion in Q3:2024-25.
• In the financial account, foreign direct investment (FDI) recorded a net outflow
of US$ 3.7 billion in Q3:2025-26, higher than a net outflow of US$ 2.8 billion in
Q3:2024-25.
• Foreign portfolio investment (FPI) recorded a net outflow of US$ 0.2 billion in
Q3:2025-26, lower than a net outflow of US$ 11.4 billion in Q3:2024-25.
• Non-resident deposits (NRI deposits) recorded a net inflow of US$ 5.1 billion
in Q3:2025-26, higher than US$ 3.1 billion in Q3:2024-25.
• Net inflows under external commercial borrowings (ECBs) to India amounted
to US$ 3.3 billion in Q3:2025-26, lower than a net inflow of US$ 4.4 billion in
Q3:2024-25.
• Foreign exchange reserves depleted by US$ 24.4 billion (on a BoP basis) in
Q3:2025-26 as compared with a depletion of US$ 37.7 billion in Q3:2024-25
(Table 1).
1 The current account deficit for Q2:2025-26 has been revised upwards from US$ 12.3 billion (1.3 per cent of
GDP) to US$ 14.1 billion (1.5 per cent of GDP) due to upward revision of imports in Customs data.
2 For longer time series data, please see: CIMS DBIE (rbi.org.in) › Statistics › External Sector › International Trade
› Quarterly/Yearly.2
BoP During April-December 2025
• India’s current account deficit moderated to US$ 30.1 billion (1.0 per cent of
GDP) in April-December 2025 from US$ 36.6 billion (1.3 per cent of GDP)
during April-December 2024 (Table 1).
• Net invisibles receipts3 at US$ 221.5 billion were higher in April-December
2025 than US$ 191.0 billion a year ago, primarily on account of higher net
services receipts and net personal transfers.
• Net FDI inflows increased to US$ 3.0 billion in April-December 2025 from US$
0.6 billion in April-December 2024.
• FPI recorded net outflows of US$ 4.3 billion in April-December 2025 as
against net inflows of US$ 9.4 billion a year ago.
• In April-December 2025, foreign exchange reserves depleted by US$ 30.8
billion (on a BoP basis) as compared with a depletion of US$ 13.8 billion a
year ago.
Table 1: Major Items of India's Balance of Payments
(US$ billion)
October-December October-December April-December April-December
2024 PR 2025 P 2024 PR 2025 P
Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net
A. Current Account 261.7 273.0 -11.3 274.9 288.0 -13.2 753.5 790.1 -36.6 797.6 827.7 -30.1
1. Goods 109.8 189.1 -79.3 111.7 205.3 -93.6 325.6 553.3 -227.6 333.4 585.0 -251.6
of which:
POL 12.6 48.4 -35.7 11.9 43.3 -31.4 49.3 141.4 -92.1 41.9 135.4 -93.5
2. Services 103.5 52.3 51.2 111.2 53.7 57.5 285.5 150.0 135.5 310.2 154.0 156.3
3. Primary Income 12.3 28.8 -16.4 14.0 26.2 -12.2 41.5 78.0 -36.5 42.9 80.1 -37.2
4. Secondary Income 36.1 2.9 33.2 37.9 2.8 35.2 100.9 8.9 92.0 111.0 8.7 102.4
B. Capital Account and
320.1 309.1 11.0 484.5 470.1 14.4 900.3 864.3 36.0 1160.6 1129.8 30.8
Financial Account
of which:
1. Direct Investment 20.6 23.4 -2.8 22.5 26.1 -3.7 65.7 65.1 0.6 75.7 72.7 3.0
2. Portfolio Investment 171.4 182.8 -11.4 185.6 185.7 -0.2 513.4 503.9 9.4 467.5 471.8 -4.3
3. Other Investments 83.7 90.5 -6.8 245.3 245.9 -0.6 264.1 237.1 26.9 563.6 547.4 16.2
of which:
NRI Deposits 25.9 22.8 3.1 25.9 20.9 5.1 78.3 64.9 13.3 73.0 61.9 11.1
ECBs to India 11.3 6.9 4.4 7.9 4.6 3.3 32.2 21.2 11.0 25.7 17.1 8.7
4. Reserve Assets
[Increase (-)/Decrease 37.7 0.0 37.7 24.4 0.0 24.4 37.7 23.8 13.8 35.3 4.5 30.8
(+)]
C. Errors & Omissions
0.3 0.0 0.3 0.0 1.2 -1.2 0.6 0.0 0.6 0.0 0.7 -0.7
(-) (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: 2025-2026/2201 Chief General Manager
3 Net invisibles receipts comprise services, primary income and secondary income accounts.