FX.co ★ India Swings to Balance of Payments Surplus in Q1 2026, Reversing Late-2025 Deficit

India’s external accounts staged a sharp turnaround at the start of 2026, with the country’s balance of payments (BoP) moving into a surplus in the first quarter. The BoP stood at USD 7.2 billion in Q1 2026, a marked reversal from the USD 24.4 billion deficit recorded in the fourth quarter of 2025.

The shift from a sizable shortfall at the end of 2025 to a surplus in early 2026 points to a rapid improvement in India’s overall external position during the period. While the exact drivers are not detailed in the latest release, such a move typically reflects a combination of factors, including changes in trade flows, services exports, investment inflows, and reserve movements.

The updated figures, released on 8 June 2026, will likely draw close attention from investors and policymakers, as they may signal easing external pressures and a more favorable backdrop for India’s currency and financial markets going into the rest of the year.