India reported a current account surplus in the January-March quarter of FY26, aided by strong growth in services exports that helped offset a sharply wider merchandise trade deficit.
According to data released by the Reserve Bank of India (RBI) on Monday, the country’s current account recorded a surplus of USD 7.1 billion, or 0.7 per cent of GDP, in the fourth quarter of 2025-26.
The surplus was lower than the USD 13.7 billion, or 1.4 per cent of GDP, recorded in the corresponding quarter of the previous fiscal year.
For the full financial year 2025-26, India posted a current account deficit (CAD) of USD 25.2 billion, equivalent to 0.6 per cent of GDP, compared with a deficit of USD 22.9 billion, or 0.6 per cent of GDP, in 2024-25.
The RBI said net services receipts rose to USD 60.4 billion during the quarter from USD 53.3 billion a year earlier, driven by growth in key export segments including computer services and other business services.
The increase in services earnings helped cushion the impact of a widening merchandise trade deficit, which rose to USD 83.4 billion in the January-March quarter from USD 59.3 billion in the year-ago period.
The current account measures the flow of goods, services, investment income and transfers between India and the rest of the world. A surplus indicates that inflows exceeded outflows during the period.
The latest data highlights the growing role of services exports in supporting India’s external sector, even as merchandise trade continues to face headwinds amid global economic uncertainty and rising import demand.
Despite the increase in the annual current account deficit, the deficit remained contained at 0.6 per cent of GDP, a level widely considered manageable for the Indian economy.
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