India records $7.1 bn current account surplus in Q4 FY26

Services exports increased on a y-o-y basis in major categories, such as computer services and other biz services

PTI

mumbai

India recorded a current account surplus of $7.1 billion, or 0.7% of GDP, in the January–March quarter of 2025–26, helped by services exports and higher remittances, according to Reserve Bank of India (RBI) data released on Monday. The surplus stood at $13.7 billion, or 1.4% of GDP, in the fourth quarter of 2024–25.

However, for the entire fiscal 2025–26, the current account deficit stood at $25.2 billion, or 0.6% of GDP, compared to $22.9 billion, or 0.6% of GDP, in 2024–25. While the merchandise trade deficit at $83.4 billion in Q4 2025–26 was higher than $59.3 billion in the year-ago quarter, net services receipts increased to $60.4 billion from $53.3 billion. Services exports increased on a year-on-year basis in major categories, such as computer services and other business services, according to the data on Developments in India’s Balance of Payments during the Fourth Quarter (January–March) of 2025–26. 

Personal transfer receipts under the secondary income account, mainly representing remittances by Indians employed overseas, rose to $43.5 billion in Q4 2025–26 from $33.9 billion a year ago. 

In the financial account, foreign direct investment (FDI) recorded a net inflow of $4.2 billion in Q4 2025–26, higher than $0.4 billion in the year-ago period. Foreign portfolio investment (FPI) recorded a net inflow of $12 billion in the final quarter of 2025–26 against an outflow of $5.9 billion a year earlier. 

The data also showed that net outgo on the primary income account, mainly reflecting payments of investment income, decreased to $11.1 billion in the fourth quarter from $11.9 billion in 

the January–March period 

of 2024–25. Non-resident deposits recorded a net inflow of $3.3 billion compared to $2.8 billion in Q4 2024–25.