Mumbai — India recorded a current account surplus of $4.7 billion in April, compared with a deficit of $4.8 billion in the same month last year, according to preliminary figures released Monday by the Reserve Bank of India.
The surplus was supported by stronger services exports and higher remittances from Indians working overseas, even as foreign portfolio investors pulled more money out of Indian stock markets during the month.
Net services exports rose to $18.6 billion in April, up from $15.9 billion a year earlier. Services exports stood at $37 billion, while imports were $18.4 billion, the RBI data showed.
Net transfers, which largely include remittances, increased sharply to $16 billion from $9.4 billion in April last year. The net income deficit also narrowed to $1.9 billion from $3 billion.
On the capital account, net foreign direct investment rose to $7.4 billion in April from $1.6 billion a year earlier. Gross FDI inflows more than doubled to $11.4 billion from $5 billion.
However, net foreign portfolio investment recorded an outflow of $8.7 billion during the month, compared with an outflow of $2.1 billion in April last year. Banking capital also turned negative, registering a net outflow of $3.7 billion, against an inflow of $3.3 billion a year earlier.
India had reported a current account surplus of $7.1 billion, or 0.7 percent of GDP, in the January-March quarter of 2025-26, according to RBI data.
The merchandise trade deficit stood at $83.4 billion in the quarter, compared with $59.3 billion in the same period of 2024-25. Net services receipts rose to $60.4 billion in the fourth quarter of 2025-26 from $53.3 billion a year earlier.
FDI recorded a net inflow of $4.2 billion in the fourth quarter of 2025-26. For the full fiscal year, net FDI inflows increased to $6.9 billion from $1 billion in 2024-25.
Foreign portfolio investment, however, posted a net outflow of $12 billion in the fourth quarter. For 2025-26, FPIs recorded net outflows of $16.4 billion, compared with net inflows of $3.6 billion a year earlier. (Source: IANS)
