India recorded a current account surplus of US$ 7.1 billion (0.7% of GDP) in Q4 FY26, lower than US$ 13.7 billion (1.4% of GDP) in the same quarter last year.
The merchandise trade deficit widened to US$ 83.4 billion in Q4 FY26 from US$ 59.3 billion a year earlier. However, net services receipts rose to US$ 60.4 billion from US$ 53.3 billion, helped by stronger computer and business services exports.
The primary income account deficit narrowed to US$ 11.1 billion from US$ 11.9 billion. Personal remittances from Indians working abroad increased sharply to US$ 43.5 billion from US$ 33.9 billion.
Foreign direct investment (FDI) saw a net inflow of US$ 4.2 billion in Q4 FY26, up from US$ 0.4 billion a year ago. Foreign portfolio investors (FPIs) recorded a net outflow of US$ 12.0 billion, compared with an outflow of US$ 5.9 billion last year.
NRI deposits recorded a net inflow of US$ 3.3 billion, higher than US$ 2.8 billion a year earlier. Net inflows through external commercial borrowings (ECBs) stood at US$ 3.6 billion, down from US$ 7.5 billion.
India’s foreign exchange reserves increased by US$ 7.2 billion in Q4 FY26, compared with an increase of US$ 8.8 billion in the same quarter last year.
For the full FY26, India’s current account deficit stood at US$ 25.2 billion (0.6% of GDP) versus US$ 22.9 billion (0.6% of GDP) in FY25. Net invisibles receipts rose to US$ 312.0 billion from US$ 264.0 billion, FDI inflows increased to US$ 6.9 billion from US$ 1.0 billion, while FPIs saw net outflows of US$ 16.4 billion compared with inflows of US$ 3.6 billion a year ago. Foreign exchange reserves declined by US$ 23.6 billion during FY26 versus a US$ 5.0 billion decline in FY25.
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