India Records $66.8 Billion Balance of Payments Surplus
India reversed a previous deficit to record a $66.8 billion balance of payments surplus in H1FY27, driven by massive non-resident bank deposit inflows.
The Reserve Bank of India reported a balance of payments (BoP) surplus of $66.8 billion for the first half of the 2027 financial year, a significant reversal from the $6.4 billion deficit recorded during the same period the previous year. This turnaround was primarily driven by a capital account surplus of $92.6 billion, fueled by $125.6 billion in foreign currency non-resident bank (FCNR-B) deposits resulting from a dollar mobilisation programme.
This capital surge offset a widening current account deficit, which grew to $25.8 billion from $18 billion a year earlier. The deficit was largely the result of a merchandise trade gap that reached $176.1 billion as imports outpaced exports. While net services receipts rose to $105 billion, they were unable to fully close the trade gap. Other capital movements included $8.8 billion in net foreign direct investment, though this was countered by $40.6 billion in outflows for maturing external commercial borrowings.
Recent data from September 2026 shows a continued positive trend with a monthly BoP surplus of $8.8 billion, supported by $22.2 billion in banking capital inflows and a $19.2 billion services surplus. Gaura Sen Gupta of IDFC First Bank noted that while FCNR-B support has ended, the outlook remains positive due to resilient remittances and lower dollar hedging demand.
