India recorded a current account surplus of $13.5 billion in the fourth quarter of FY25, marking a notable shift from previous deficits, according to data released by the Reserve Bank of India (RBI).
This turnaround was primarily driven by strong growth in services exports and a decline in primary income outflows. Despite a widening merchandise trade deficit, the current account benefited from increased remittance inflows and the continued resilience of the services sector.
For the full fiscal year, India’s current account deficit stood at $23.3 billion, reflecting an improvement in external balances supported by favorable trends in non-merchandise components.
The positive Q4 figures highlight India’s strengthening position in global services trade and underline the stabilizing effect of remittances and investment income on the country’s external account.
