India Q4 FY26 Current Account Surplus
Analysis based on 17 articles · First reported Jun 08, 2026 · Last updated Jun 08, 2026
The reported current account surplus for Q4 FY26 in India, driven by strong services exports and remittances, is generally positive for market sentiment towards India's economy. However, the widening merchandise trade deficit and net outflows from Foreign portfolio investment for the full fiscal year could temper optimism, potentially affecting the Indian Rupee and equity markets.
India recorded a current account surplus of USD 7.1 billion (0.7% of GDP) in the January-March quarter of FY26, primarily due to robust services exports and increased remittances. This surplus, however, was lower than the USD 13.7 billion recorded in the same period of the previous fiscal year. For the entire fiscal year 2025-26, India's current account deficit stood at USD 25.2 billion (0.6% of GDP), marginally higher than the previous year but still considered manageable. The merchandise trade deficit widened significantly, but this was largely offset by strong net services receipts and personal transfer receipts. Foreign direct investment saw increased net inflows, while Foreign portfolio investment experienced net outflows during the quarter and the full fiscal year. Foreign exchange reserves also saw a depletion over the full fiscal year.
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