FX.co ★ India’s Balance of Payments Swings to $24.4B Deficit in Q3 2025, Reversing Prior Surplus

India’s external accounts saw a sharp turnaround in the third quarter of 2025, as the country’s Balance of Payments (BoP) slipped into a deficit of USD 24.4 billion, according to data updated on 2 March 2026. This marks a significant reversal from the previous reading of a USD 4.5 billion surplus recorded in the same quarter of 2025.

The swing from surplus to deficit suggests a notable shift in India’s external financing position over the period, with net outflows now exceeding inflows on the combined current, capital and financial accounts. While the data release does not provide a breakdown of the drivers, the scale of the move is likely to draw close attention from investors and policymakers monitoring India’s external vulnerability, foreign exchange reserves, and currency stability.

Market participants and analysts will be looking for further official detail and commentary to understand whether the deficit reflects temporary factors—such as one-off investment flows or timing effects—or a more persistent widening in external funding needs that could influence India’s macroeconomic outlook and policy stance going forward.