India records current account surplus of $4.7 billion in April
Mumbai, June 15
India recorded a current account surplus of $4.7 billion in April this year, compared with a deficit of $4.8 billion in the same month last year, despite higher net foreign portfolio investment outflows from the stock markets, preliminary figures released by the Reserve Bank of India on Monday showed.
The surplus came on the back of a surge in services exports during the month and higher remittances from Indians working abroad.
Net services exports strengthened to $18.6 billion during the month, up from $15.9 billion in April last year. Services exports stood at $37 billion, while imports were $18.4 billion, according to the data.
Net transfers, which largely comprise remittances, rose sharply to $16 billion in April from $9.4 billion in the same month of the previous year. The net income deficit narrowed to $1.9 billion from $3 billion.
On the capital account, net foreign direct investment (FDI) increased to $7.4 billion in April 2026 from $1.6 billion in the same month last year, while gross FDI inflows into the country more than doubled to $11.4 billion from $5 billion.
However, net foreign portfolio investment (FPI) recorded an outflow of $8.7 billion during the month, compared with an outflow of $2.1 billion in April last year. Banking capital also turned negative, registering a net outflow of $3.7 billion against an inflow of $3.3 billion a year ago.
India had reported a current account surplus of $7.1 billion, or 0.7 per cent of GDP, in the January-March quarter of 2025-26, according to RBI data.
The merchandise trade deficit stood at $83.4 billion in the quarter this year as compared to $59.3 billion in the same quarter of 2024-25. The net services receipts increased to $60.4 billion in the last quarter of 2025-26, higher than $53.3 billion that was reported for the same quarter last year.
Foreign direct investment (FDI) recorded a net inflow of $4.2 billion in the fourth quarter of 2025-26. Similarly, net FDI inflows increased to $6.9 billion in 2025-26 from $1 billion in 2024-25.
However, foreign portfolio investment (FPI) recorded a net outflow of $12 billion in the last quarter of 2025-26. Similarly, FPIs recorded net outflows of $16.4 billion in 2025-26 as against net inflows of $3.6 billion a year ago.
— IANS
Reader Comments
Remittances going up is a huge positive for our families. 💪 Indians abroad are really stepping up during tough times. But the trade deficit widening to $83.4 billion is a concern - we need to boost manufacturing and exports of goods too, not just services.
Interesting data from India. The services sector is clearly a bright spot. But the FPI outflows of $16.4 billion for the full year suggest foreign institutional investors are not convinced about the market stability yet. Let's see if this surplus trend continues.
Good to see the current account surplus, but I wonder how sustainable it is. The FPI outflows are alarming - $8.7 billion in just one month! 😤 Also, banking capital turning negative is not a healthy sign. Government needs to address structural issues to attract long-term capital.
The remittance numbers are truly heartwarming - $16 billion in one month is incredible. Shows how much our diaspora contributes. But we need to ask: why is the trade deficit ballooning? $83.4 billion is massive. Make in India needs to deliver results fast. 🙏
A current account surplus is great news, but the devil is in the details. Services exports are booming, but merchandise trade deficit is widening. Also, FPI outflows suggest global risk aversion. India needs to diversify its export base beyond IT and services to ensure long-term stability.
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