India’s Balance of Payments Surplus Jumps to $20.8 Billion in July
India’s balance of payments (BoP) recorded a $20.8 billion surplus in July 2026, sharply up from just $0.3 billion a year earlier, as foreign-exchange inflows surged following measures by the Reserve Bank of India (RBI) to attract overseas deposits. The improvement comes despite continued pressure on the country’s external accounts from elevated oil prices and capital outflows.
The current account deficit widened to $7 billion in July from $3.2 billion in the same month last year, while net transfers, including remittances from Indians working overseas, increased to $13.2 billion from $12.6 billion. Meanwhile, the capital account recorded a $27.7 billion inflow, compared with $3.5 billion a year earlier. In June, the RBI introduced measures including discounted hedging for overseas borrowings by state-run firms and banks, as well as free hedging for banks raising overseas foreign-exchange deposits.
The RBI received $136.4 billion under the schemes between June 5 and August 31, including a much larger-than-expected $127 billion from non-resident deposits. The measures have helped ease concerns over India’s external financing position, which had become a key pressure point for the rupee in 2026 amid higher crude prices following the Iran war and persistent capital outflows. Analysts now expect India’s BoP to remain near neutral or post a modest surplus in the fiscal year ending March 2027.
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