India Records 0.7% Current Account Surplus in Q4 FY26

India posted a current account surplus of 0.7% of GDP in the January–March quarter (Q4) of FY26, according to data released by the Reserve Bank of India on 8 June 2026. This was a reversal from the deficit of about $13.2 billion recorded in the previous quarter, though smaller than the 1.4% surplus seen in the same quarter a year earlier.

The current account is the part of the balance of payments that records the flow of goods, services and investment income between India and the rest of the world. A surplus means money coming into the country exceeded money going out, which points to greater external stability and reduced pressure on the rupee.

Two factors drove the surplus. Net earnings from services rose to about $60.4 billion, helped by strong exports of software and other business services. Remittances sent home by Indians working abroad also climbed to roughly $43.5 billion. There had been concern that the conflict in West Asia could disrupt these remittance flows, but they held up strongly during the quarter.

For the full financial year, the current account deficit stood at about $25.2 billion, or 0.6% of GDP — broadly steady compared with the previous year. A small, stable deficit financed comfortably by capital inflows is generally viewed as healthy for an economy of India's size.