India posts $7.1 billion current account surplus in Q4 as services exports strengthen

India recorded a current account surplus of $7.1 billion, equivalent to 0.7% of GDP, in the January-March quarter of FY26, according to Reserve Bank of India data released on Monday.

The surplus was lower than the $13.7 billion, or 1.4% of GDP, recorded in the corresponding quarter of FY25, according to news agency PTI.

However, for the full financial year 2025-26, the current account deficit stood at $25.2 billion, or 0.6% of GDP, compared with $22.9 billion, also 0.6% of GDP, in FY25.

"Net services receipts increased to USD 60.4 billion in Q4 2025-26 from USD 53.3 billion a year ago," according to RBI's data on Developments in India's Balance of Payments during the Fourth Quarter (January-March) of 2025-26.

The central bank said services exports registered year-on-year growth across major segments, including computer services and other business services.

At the same time, the merchandise trade deficit widened significantly during the quarter. The merchandise trade gap rose to $83.4 billion in Q4 FY26 from $59.3 billion in the year-ago period, according to the RBI data.

Despite the higher trade deficit, robust services exports helped India remain in current account surplus during the January-March quarter.