India’s current account showed a surplus of $4.7 billion in April, a significant increase from the $4.8 billion deficit reported in the same month last year. This surplus was achieved despite higher net foreign portfolio investment outflows from the stock markets. The Reserve Bank of India’s preliminary figures highlighted a surge in services exports and increased remittances from Indians working abroad as key contributors to this surplus.
Net services exports rose to $18.6 billion in April, up from $15.9 billion in the previous year. The data revealed that services exports amounted to $37 billion, while imports stood at $18.4 billion during the same period. Additionally, net transfers, primarily comprising remittances, saw a substantial increase to $16 billion in April, compared to $9.4 billion in the corresponding month of the previous year. The net income deficit also narrowed to $1.9 billion from $3 billion.
In terms of the capital account, net foreign direct investment surged to $7.4 billion in April 2026, a significant rise from $1.6 billion in the same month last year. Gross FDI inflows into the country more than doubled to $11.4 billion from $5 billion. However, net foreign portfolio investment recorded an outflow of $8.7 billion in April, contrasting with an outflow of $2.1 billion in the previous year. Banking capital also experienced a negative turn, with a net outflow of $3.7 billion compared to an inflow of $3.3 billion a year ago.
India had previously reported a current account surplus of $7.1 billion, equivalent to 0.7% of GDP, in the January-March quarter of 2025-26, according to RBI data. The merchandise trade deficit for the quarter stood at $83.4 billion this year, higher than the $59.3 billion reported in the same quarter of the previous year. Net services receipts also saw an increase to $60.4 billion in the last quarter of 2025-26, surpassing the $53.3 billion reported for the corresponding quarter last year.
Foreign direct investment (FDI) recorded a net inflow of $4.2 billion in the fourth quarter of 2025-26, with net FDI inflows rising to $6.9 billion in 2025-26 from $1 billion in 2024-25. Conversely, foreign portfolio investment (FPI) experienced a net outflow of $12 billion in the last quarter of 2025-26, with FPIs recording net outflows of $16.4 billion in 2025-26 compared to net inflows of $3.6 billion the previous year.
