India recorded a current account deficit of $2 billion in May 2026. This figure was attributed to an increase in the goods trade gap. According to preliminary Balance of Payments (BoP) data published by the Reserve Bank of India (RBI) on Wednesday, imports exceeded exports of goods.
In May 2026, the current account showed a deficit of $2 billion, compared to a surplus of $0.7 billion in May 2025. It is worth noting that during the period from April to May of fiscal year 27, India's current account reached a surplus of $2.8 billion, a reversal from the deficit of $4.1 billion in the same period last year, primarily due to increased net transfers.
In May, the goods trade deficit increased to $27.9 billion compared to $22.6 billion a year earlier. Exports rose to $46.1 billion from $38.7 billion, while imports increased to $74 billion from $61.3 billion for the same period last year. Net service exports remained relatively stable at $15.7 billion, while net transfers, supported by remittances, grew to $13.6 billion from $10.5 billion a year ago.
The capital account registered a net outflow of $2.4 billion in May, contrasting with a net inflow of $3.7 billion the previous year. The main reason for this was the outflow of Foreign Portfolio Investments (FPI) amounting to $4.7 billion versus an inflow of $1.3 billion in May last year. Net Foreign Direct Investment (FDI) for the month showed an outflow of $0.1 billion against an inflow of $0.9 billion in the corresponding month last year. Furthermore, External Commercial Borrowings (ECB) recorded a modest net inflow of $0.1 billion compared to an inflow of $2.4 billion a year earlier, and India's short-term credit registered a net inflow of $3.2 billion. Banking capital demonstrated a net outflow of $1.1 billion, however, the net inflow of Non-Resident Indian (NRI) deposits amounted to $0.6 billion in May.
Overall, India's balance of payments in May was in a deficit of $4.4 billion, differing from a surplus of $4.4 billion in the same month last year. Nevertheless, the balance of payments deficit narrowed compared to April. In the first two months of fiscal year 27, the deficit stood at $11 billion, whereas in the corresponding period of the previous fiscal year, there was a surplus of $5 billion.
Uzbekistan's current account deficit increased to $5.79 billion in the first quarter of 2026, significantly higher than the $304 million recorded during the same period last year. This data was presented in a comprehensive review by the Central Bank, covering the country's balance of payments, international investment position, and external debt.
Despite persistent geopolitical tensions and high uncertainty in the global economy, positive trends were observed in Uzbekistan's external sector. Growth in exports of goods and services excluding gold continued, international remittances increased, and international reserves expanded, which contributed to strengthening the country's net international investment position.
The main reason for the sharp increase in the deficit was the expansion of the negative trade balance, which grew from $2.7 billion to $8.3 billion. Total exports for January-March decreased to $5.6 billion. Goods exports fell from $6.2 billion to $3.4 billion, mainly due to the suspension of gold sales. Nevertheless, non-monetary gold exports grew by 29%, and service exports increased by 18%, reaching $2.17 billion.
Conversely, imports rose by 29% to $13.9 billion, driven by sustained investment activity and high domestic demand. Goods imports increased by 33% to $10.2 billion, while service imports rose by 19%, reaching $3.7 billion. The largest growth in imports was recorded in the segments of machinery and equipment, vehicles, chemical and mineral products, and food products.
The negative foreign trade balance and primary income deficit of $43 million were partially offset by a net inflow of secondary income, which reached $2.5 billion, bringing the total inflow in this category to $2.9 billion.
According to the regulator, the current account deficit was financed primarily through direct and other investments. The net inflow of foreign direct investment (FDI) amounted to $702 million, and portfolio investments attracted $4.1 million. The 'other investments' category showed a net inflow of about $1.1 billion, related to currency and deposit operations, trade credits, and external loans from the public sector, commercial banks, and other economic sectors.
By the end of the first quarter, the negative financial balance reached $4.9 billion. Although the currency component of international reserves decreased by $3.1 billion, the total volume of international reserves increased by almost $2.7 billion due to rising global gold prices, reaching $69 billion as of April 1, 2026.
The country's net international investment position improved by 10% over the quarter, reaching $21.6 billion. Residents' external assets grew by $2.6 billion to $131.08 billion, while external liabilities increased by $534 million to $109.49 billion. Uzbekistan's total external debt remained stable compared to the beginning of the year, standing at $82.2 billion on April 1. Of this amount, government external debt was $40.5 billion, and corporate external debt was $41.7 billion.
The Central Bank emphasized that corporate external loans are secured by the private sector without state guarantees and are fully serviced by the companies' own funds and commercial banks. According to International Monetary Fund (IMF) estimates, Uzbekistan's debt burden remains moderate, as a significant portion of its external obligations was obtained on preferential terms.
