India recorded a current account surplus of $13.5 billion (1.3% of GDP) in the January–March quarter of FY25, marking the first surplus in four quarters. The turnaround was driven by strong services exports and remittance inflows, even as the merchandise trade deficit remained substantial.

Key Points:

• India posted a current account surplus of $13.5 billion in Q4 FY25, reversing the $11.3 billion deficit from the previous quarter.
• Net services receipts rose to $53.3 billion, supported by growth in business and IT services exports.
• Remittance inflows (personal transfers) increased to $33.9 billion, compared to $31.3 billion in the same quarter of the previous year.
• The merchandise trade deficit widened to $59.5 billion in Q4 FY25, up from $52 billion a year earlier.
• For the full fiscal year, the current account deficit narrowed to $23.3 billion, or 0.6% of GDP, from $26 billion (0.7%) in FY24.
• Economists expect the surplus to be short-lived, projecting a return to deficit in Q1 FY26 amid global economic uncertainty and rising trade imbalances.