India posts balance of payments deficit in April on foreign portfolio outflows

BANGALORE: India’s balance of payments fell into deficit in April, driven by capital outflows, even as the current account swung to a surplus, according to preliminary data released by the country’s central bank on Monday.

The Reserve Bank of India, which until now released BoP data on a quarterly basis, said it would now publish the figures monthly, with a delay of 45 days or less.

Here are some details from the April data:

India’s overall balance of payments recorded a deficit of $6.6 billion in April this year compared with a surplus of $500 million in the year-ago period.

Current account balance swung to a surplus of $4.7 billion for the month from a deficit of $4.8 billion in April 2025.

Net transfers, which include remittances from Indian workers overseas, jumped to $16 billion compared with $9.4 billion a year ago.

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However, the capital account, which includes foreign portfolio investments, saw an outflow of $11.3 billion in April 2026 compared with an inflow of $5.3 billion in the same month last year.

Net foreign direct investment during the month stood at $7.4 billion from $1.6 billion a year ago.

Last week, India reported a surprise surplus in current account and overall balance of payments for the January-March quarter of fiscal 2026 on strong earnings from the services sector, an increase in worker remittances and forex swaps conducted by the central bank.

India’s balance of payments deficit was expected to widen in the current financial year as the country’s energy import bill surged, with the Iran war driving up crude oil prices. However, the RBI’s move to draw dollars from non-resident Indians via a subsidised swap scheme is seen improving this balance, with some economists now expecting a BoP surplus in the 2026-27 fiscal year.