Forbes India

India’s current account deficit at 0.7 percent of GDP in Q4FY26: RBI

India’s current account was at a surplus of $7.1 billion, or 0.7 percent of gross domestic product (GDP), in the January-March quarter (Q4) of FY26, according to Reserve Bank of India (RBI) data released on Monday. The revised figures for Q3FY26 show a deficit of $15.5 billion or 1.5 percent of GDP due to an upward revision of merchandise imports in customs data. The deficit in Q4FY25 stood at $13.7 billion or 1.4 percent of GDP.For the full year 2025-26, however, the current account deficit (CAD) widened to $25.2 billion compared to $22.9 billion in the previous financial year, as a ballooning merchandise trade gap, which was up $337.3 billion from $286.9 billion in FY25, offset strong gains in services and remittances. As a ratio of GDP, however, CAD remained unchanged at 0.6 percent of GDP in FY26.Remittances saw a significant increase, which jumped to $41.3 billion (net) in Q4FY26, from $31.5 billion a year ago. For the full year, remittances under the secondary income account rose to $143.6 billion (net) in FY26, 16.3 percent higher than the previous financial year.Also Read: How India's FY26 GDP estimates beat expectationsServices exports continued their steady climb, with net receipts reaching $60.4 billion in Q4FY26, driven by computer services and other business services.On the capital account side, the picture was more mixed. Net FDI inflows recovered strongly to $4.2 billion in Q4FY26 from $0.4 billion a year ago and totalled $6.9 billion for FY26. Foreign portfolio investors, however, remained net sellers, pulling out $12 billion in Q4FY26 and $16.4 billion over the full year, reversing the $3.6 billion net inflow recorded in FY25, as global risk-off sentiment and a stronger dollar weighed on emerging market allocations.For the full year, India’s foreign exchange reserves depleted by $23.6 billion, compared with a $5 billion draw-down in FY25.

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