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.
India Q4 BoP: US$43.5B Remittances, US$4.2B FDI Inflows Rise
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
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