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Key Points

India's remittance inflows showed remarkable growth, reaching USD 33.2 billion in the first quarter of FY26. Service exports also performed strongly, climbing to USD 97.4 billion during the same period. The country's current account deficit narrowed significantly to just 0.2% of GDP, indicating improved economic stability. These positive trends were supported by net positive financial flows that contributed to foreign exchange reserve accretion.

Key Points: India Remittances Hit USD 33.2 Billion in Q1 FY26 Crisil Reports

  • Remittances surged to USD 33.2 billion in Q1 FY26 from USD 28.6 billion last year
  • Service exports grew to USD 97.4 billion from USD 88.5 billion year-on-year
  • Current account deficit narrowed sharply to USD 2.4 billion from USD 8.6 billion
  • Financial flows remained net positive at USD 13.2 billion despite easing inflows
2 min read

Remittances to India surged to USD 33.2 billion in Q1 of current FY26, up Y-o-Y from USD 28.6 billion: Crisil

India's remittances surge to USD 33.2 billion in Q1 FY26, up from USD 28.6 billion last year, as service exports and financial flows also show strong growth.

"Services exports stood at USD 97.4 billion in the first quarter of fiscal 2026, up on-year from USD 88.5 billion. Likewise, remittances rose to USD 33.2 billion, from USD 28.6 billion. - Crisil Report"

New Delhi, September 3

The remittances in the country rose to USD 33.2 billion in the first quarter of the current financial year, from USD 28.6 billion recorded last year during the same time period, according to a report by Crisil.

The report stated that the country's service exports also increased to USD 97.4 billion in the first quarter of fiscal 2026, up from USD 88.5 billion a year ago.

It stated, "Services exports stood at USD 97.4 billion in the first quarter of fiscal 2026, up on-year from USD 88.5 billion. Likewise, remittances rose to USD 33.2 billion, from USD 28.6 billion."

The report further shared that India's current account deficit (CAD) narrowed to USD 2.4 billion, or 0.2 per cent of gross domestic product (GDP), in the first quarter of this fiscal. This was sharply lower than the USD 8.6 billion, or 0.9 per cent of GDP, recorded in the same quarter of the previous year.

The report also shared that in the first quarter, financial flows remained net positive at USD 13.2 billion, which was higher than the CAD, leading to an accretion in foreign exchange reserves.

Still, these inflows were lower than the USD 16.6 billion recorded in the year-ago period, as both net foreign direct investment (FDI) and net non-resident Indian (NRI) inflows eased.

FDI inflows rose to USD 27.2 billion from USD 23.9 billion, but outflows also surged to USD 22.2 billion from USD 17.7 billion, lowering the net addition.

Net foreign portfolio investment (FPI) inflows increased to USD 1.6 billion from USD 0.9 billion last year. Within FPI, equity inflows turned positive at USD 5.4 billion compared with outflows of USD 1 billion earlier.

In contrast, the debt segment saw net outflows of USD 2.9 billion, compared with net inflows of USD 1.9 billion a year ago. According to the report, the second quarter is likely to see net equity outflows and net debt inflows.

Further, net external commercial borrowing (ECB) flows improved to USD 3.7 billion from USD 1.6 billion, suggesting corporates continued to borrow abroad at favourable terms.

The report also noted that despite India's rate-easing cycle, which began in February 2025, the transmission to marginal cost of lending rates (MCLR) based loans remains incomplete.

- ANI

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Reader Comments

R
Rohit P
While the numbers look good, I wonder how much of this remittance growth is actually reaching rural households. Sometimes these figures don't reflect ground reality for middle-class families.
A
Arjun K
Great to see service exports crossing $97 billion! Our IT and service sector professionals are making India proud globally. The narrowing CAD is particularly encouraging for economic stability.
S
Sarah B
As someone working in the Gulf, I'm happy to contribute to India's growth. The strong rupee conversion rates have been good for sending money home this year.
V
Vikram M
The debt segment outflows are concerning though. We need to ensure foreign investors maintain confidence in Indian markets. The government should focus on policy stability.
K
Kavya N
My brother in Canada sends money every month to support our parents. This data shows how many Indian families depend on overseas earnings. Heartwarming to see this collective contribution! ❤️

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