New Delhi, June 20 -- India's balance of payments outlook looks more favourable than the rupee's recent weakness suggests, with a Q1 CY26 surplus and lower oil and gold import assumptions prompting Goldman Sachs to cut its current account deficit forecasts, the brokerage said in a research report.

Goldman Sachs said India posted a $7.2bn BoP surplus in Q1 CY26 despite softer capital inflows, supported by stronger remittances, robust services exports and low oil imports. The apparent divergence between INR weakness and strong underlying BoP fundamentals suggests recent currency pressure was driven more by precautionary dollar demand amid heightened Middle-East uncertainty than by a deterioration in external fundamentals.

Goldman Sachs se...