India Records USD 7.1 Billion Current Account Surplus In Q4 FY26 On Strong Services Exports And Remittances

Mumbai, June 8: India recorded a current account surplus of USD 7.1 billion, or 0.7 per cent of GDP, in the January-March quarter of 2025-26, helped by services exports and higher remittances, according to Reserve Bank data released on Monday.

The surplus was USD 13.7 billion, or 1.4 per cent of GDP, in the fourth quarter of 2024-25.

However, for the entire fiscal 2025-26, the current account deficit stood at USD 25.2 billion, or 0.6 per cent of GDP, compared to USD 22.9 billion, or 0.6 per cent of GDP, in 2024-25.

Trade and services performance

While the merchandise trade deficit at USD 83.4 billion in Q4 2025-26 was higher than USD 59.3 billion in the year-ago quarter, net services receipts increased to USD 60.4 billion from USD 53.3 billion.

Services exports increased on a year-on-year basis in major categories, such as computer services and other business services, said RBI's 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 USD 43.5 billion in Q4 2025-26 from USD 33.9 billion a year ago.

Financial account inflows

In the financial account, foreign direct investment (FDI) recorded a net inflow of USD 4.2 billion in Q4 2025-26, higher than USD 0.4 billion in the year-ago period.

On the other hand, foreign portfolio investment (FPI) invested a net of USD 12 billion in the final quarter of 2025-26 against the outflow of USD 5.9 billion a year earlier, the RBI said.

The data also showed that net outgo on the primary income account, mainly reflecting payments of investment income, decreased to USD 11.1 billion in the fourth quarter from USD 11.9 billion in the January-March period of 2024-25.

The RBI further said that non-resident deposits (NRI deposits) recorded a net inflow of USD 3.3 billion compared to USD 2.8 billion in Q4 2024-25.

Foreign exchange reserves and overall balance of payments

"Foreign exchange reserves increased by USD 7.2 billion (on a BoP basis) in Q4 2025-26 as compared to an accretion of USD 8.8 billion in Q4 2024-25," it added.

On India’s Balance of Payments in 2025-26, the data showed that net invisible receipts at USD 312 billion were higher in 2025-26 than USD 264 billion a year ago, primarily on account of net services receipts and net personal transfers.

Net invisible receipts comprise services, primary income and secondary income accounts.

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In 2025-26, foreign exchange reserves depleted by USD 23.6 billion (on a BoP basis) compared to a depletion of USD 5 billion a year ago.

Net FDI inflows stood at USD 6.9 billion in 2025-26. FPIs recorded net outflows of USD 16.4 billion in 2025-26 against net inflows of USD 3.6 billion in the year-ago period.

The depletion in foreign exchange reserves was higher at USD 23.6 billion against a reduction of USD 5 billion a year ago.

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