India reports current account surplus of $7.1 billion in Q4 of FY26
New Delhi, June 8
,: India's current account surplus narrowed in the last quarter of FY26 to $7.1 billion compared to $13.7 billion in the same period last year.
The narrowing of surplus in the last quarter of FY26 was driven by a higher merchandise trade deficit, which came in at $83.4 billion compared to $59.3 billion in Q4 of FY25.
Net services receipts increased to $60.4 billion in the January-March quarter of 2025-26 from $53.3 billion in the same period last year.
India's current account deficit (CAD) for the fiscal year FY26 stood at 0.6 per cent of GDP compared to similar figures reported in the same period last year.
In absolute terms, the deficit expanded to $25.2 billion in FY26 compared to $22.9 billion in the last fiscal year.
The net foreign direct investment (FDI) inflows increased to $6.9 billion in FY26 compared to $1 billion in FY25.
The net FPI outflows stood at $16.4 billion in FY26 against inflows of $3.6 billion a year ago. India's forex reserves depleted by $23.6 billion in the last financial year compared to $5 billion in FY25, the RBI release said.
Union Commerce Minister Piyush Goyal recently said that the Government is taking all the steps to ensure that India's current account deficit doesn't widen.
A worsening West Asian conflict and rising oil prices have added pressure on India's import bill further risking a fall in the value of the Rupee.
The RBI Governor, Sanjay Malhotra, announced a slew of measures in the recent monetary policy to boost foreign inflows to minimize volatility in rupee.
— ANI
Reader Comments
Good news that we still have a surplus, but the trade deficit widening to $83.4 billion is alarming. With rising oil prices and West Asian tensions, we're importing more expensive energy. Hope the government focuses on boosting exports instead of just managing the deficit.
Current account surplus is a sign of strength, but the drop from $13.7 billion to $7.1 billion is worrying. Services exports are doing well though – $60.4 billion in net receipts is impressive. We need to push manufacturing exports too.
The widening trade deficit is a red flag. $83.4 billion is huge. And the forex reserves dropping by $23.6 billion isn't great either. The government needs to address import substitution seriously.
Not too thrilled about these numbers. The FPI outflows are scary – shows global sentiment is shaky. And the trade deficit is ballooning. But at least FDI doubled, so that's some solace. Need to keep rupee stable.
Honestly, I wish the government would focus more on reducing imports instead of just managing deficits. The oil import bill is killing us. Why not fast-track renewable energy? And the rupee depreciation will hit common man hard.
V Varun X