New Delhi: India’s overall balance of payments recorded a surplus of $20.8 billion in July, compared with $0.3 billion a year earlier on the back of strong services exports and FDI flows into the country during the month, according to figures released by the Reserve Bank of India (RBI) on Tuesday.
For April-July, the overall balance stood at $12.7 billion, against $4.8 billion in the same period of the previous year, according to the RBI data.
India’s net capital account balance rose sharply to $27.7 billion in July from $3.5 billion a year earlier. During April-July, net capital flows increased to $23.9 billion from $11.4 billion.
Foreign direct investment (FDI) inflows shot up during the month, with net FDI surging to $7.3 billion in July from $4.5 billion in the same month of the previous year. Net FDI for April-July increased to $13.4 billion from $9.7 billion. Gross inflows into India rose to $10.7 billion in July from $7.2 billion, while outward FDI increased to $3.4 billion from $2.7 billion.
Foreign portfolio investment flows turned positive in July, with net inflows of $4.1 billion compared with an outflow of $2.5 billion a year earlier. However, for April-July, net FPI flows remained negative at $5.5 billion, compared with an outflow of $0.9 billion in the year-earlier period.
Net services exports increased to $17.6 billion in July from $16.4 billion in the same month last year. For April-July, net services exports rose to $69.3 billion from $64.3 billion, with services exports increasing to $144.5 billion from $131.2 billion.
Net transfer receipts, driven by robust remittances from Indians working abroad, rose to $13.2 billion in July from $12.6 billion a year earlier. For April-July, transfers increased to $53.9 billion from $43.4 billion.
However, India’s current account deficit widened to $7 billion in July from $3.2 billion in the year-ago period due to a higher merchandise trade deficit as oil prices rose past $86 per barrel during the month compared to $68 in July last year. Merchandise exports increased to $45.1 billion in July from $37.4 billion a year earlier, while imports rose to $76.8 billion from $65.6 billion. This increase in the trade deficit offset the rise in services exports.
The current account deficit for April-July 2026 stood at $11.2 billion, compared with $6.6 billion in the corresponding period a year earlier.
(IANS)
