India’s Current Account Posts Surplus in Q4

Mumbai: India’s current account and balance of payments (BoP) recorded a surplus in the January-March quarter of fiscal 2026, supported by stronger services exports, higher remittance inflows and forex swaps conducted by the central bank, data released on Monday showed.

“India’s current account surplus stood at US$ 7.1 billion (0.7 per cent of GDP) in Q4:2025-26 as compared to US$ 13.7 billion (1.4 per cent of GDP) in Q4:2024-25,” said the Reserve Bank of India in a release.

However, for the full year, the current account deficit (CAD) stood at $25.2 billion or 0.6 per cent of GDP.

In the October-December period, India had reported a current account deficit of $13.2 billion or 1.3 per cent of GDP.

BoP, the difference in the value of inflows into the country and outflow recorded a surplus of $7.2 billion in the January-March quarter, with a deficit of $23.6 billion for the full year.

Net services receipts increased to US$ 60.4 billion in Q4:2025-26 from US$ 53.3 billion a year ago.

“Services exports have risen on a year-on-year basis in major categories such as computer services and other business services,” said the RBI.

Personal transfer receipts under secondary income account, mainly representing remittances by Indians employed overseas, rose to US$ 43.5 billion in Q4:2025-26 from US$ 33.9 billion in Q4:2024-25.

India's merchandise trade deficit, however, widened to $83.4 billion in the March quarter from $59.3 billion a year earlier, the RBI said.

Foreign portfolio investments recorded a net outflow of $12 billion in the fourth quarter, higher than the outflow of $5.9 billion in the year-ago period.