India recorded a current account surplus of 7.1 billion US dollars (0.7% of GDP) during the January–March quarter of FY 2025–26, according to the latest report released by the Reserve Bank of India (RBI).
For the entire financial year 2025–26, India’s current account deficit (CAD) stood at 25.2 billion US dollars (0.6% of GDP), compared to 22.9 billion US dollars in FY 2024–25.
The RBI report noted that the merchandise trade deficit widened to 83.4 billion US dollars in the fourth quarter, while net services receipts increased to 60.4 billion US dollars, providing support to the external sector.
India also witnessed an increase in Foreign Direct Investment (FDI), with net inflows rising to 6.9 billion US dollars during FY 2025–26, compared to 1.0 billion US dollars in the previous year. However, Foreign Portfolio Investment (FPI) recorded a net outflow of 16.4 billion US dollars during the fiscal year.
The report further stated that India’s foreign exchange reserves increased by 7.2 billion US dollars in the January–March quarter, although reserves declined by 23.6 billion US dollars during the entire FY 2025–26 on a Balance of Payments (BoP) basis.
