India's Current Account Surplus Declines: What It Means for the Economy

India's current account surplus has decreased to USD 7.1 billion for the January-March quarter of 2025-26, down from USD 13.7 billion in the previous year. Despite this surplus, the overall fiscal year saw a current account deficit of USD 25.2 billion. The Reserve Bank's report highlights a rise in net services receipts and growth in service exports, while the merchandise trade deficit has widened significantly. This article delves into the implications of these figures for the Indian economy.

By Narendra Chaudhary Jun 8, 2026, 18:49 IST

Current Account Surplus Insights

Mumbai: According to data released by the Reserve Bank, India recorded a current account surplus of USD 7.1 billion, equivalent to 0.7% of its GDP, for the January-March quarter of the fiscal year 2025-26.

In comparison, the surplus was USD 13.7 billion, or 1.4% of GDP, during the fourth quarter of the previous fiscal year, 2024-25.

For the entire fiscal year, however, the current account deficit reached USD 25.2 billion, representing 0.6% of GDP, which is a slight increase from the USD 22.9 billion deficit recorded in 2024-25.

The Reserve Bank's report on Developments in India’s Balance of Payments for the fourth quarter indicates that net services receipts rose to USD 60.4 billion in Q4 2025-26, up from USD 53.3 billion the previous year.

Exports of services saw growth across major sectors, including computer services and various business services.

Conversely, the merchandise trade deficit widened to USD 83.4 billion in Q4 2025-26, compared to USD 59.3 billion in the same quarter of 2024-25.