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Informist, Monday, Jun. 8, 2026

 

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--RBI: India Jan-Mar current account surplus $7.1 bln 
--RBI: India FY26 current account deficit $25.2 bln
--RBI: India FY26 current account deficit $25.2 bln, 0.6% of GDP 
--RBI: India FY26 CAD $25.2 bln vs $22.9 bln FY25 
--RBI: India Jan-Mar current account surplus $7.1 bln vs $13.7 bln year ago 
--RBI: India Jan-Mar current account surplus 0.7% of GDP
--RBI: Jan-Mar net accretion to FX reserves $7.2 bln on BoP basis 
--RBI: FY26 net depletion of FX reserves $23.6 bln on BoP basis 
--RBI:FY26 net depletion of FX reserves $23.6 bln on BoP basis vs $5 bln FY25 
--RBI: India Jan-Mar net FDI inflow $4.2 bln vs $0.4 bln year ago 
--RBI: Jan-Mar net portfolio investment outflows $12 bln vs $5.9 bln yr ago

 

NEW DELHI – India's current account surplus fell to $7.1 billion in the March quarter from $13.7 billion a year ago, reflecting the impact of the war in West Asia with higher oil imports and large foreign portfolio outflows, data released by the Reserve Bank of India on Monday showed. The current account was in a deficit of $15.5 billion in the December quarter.

 

In percentage terms, the current account surplus was 0.7% of GDP, lower than 1.4% of GDP a year ago. In Oct-Dec, the current account deficit was 1.5% of GDP.

 

India's current account was in a deficit of $25.2 billion during 2025-26 (Apr-Mar), slightly higher than $22.9 billion a year ago. As a share of GDP, the deficit remained unchanged in FY26 at 0.6%.

 

Economists had expected the current account to be in a deficit in the March quarter owing to high energy prices. "The overall BOP turned surplus in 4QFY26 (Jan-Mar) aided by current account surplus, especially by robust remittances. The FPI outflows were offset by other capital inflows through FDI, banking capital and ECB (external commercial borrowing)," Kotak Mahindra Bank Chief Economist Upasna Bhardwaj said in a note.

 

Workers' remittances, a key contributor to India's foreign exchange earnings, rose to $43.5 billion in Jan-Mar from $33.9 billion a year ago. Net outgo on the primary income account, which reflects payments of investment income, fell to $11.1 billion in Jan-Mar from $11.9 billion a year ago.

 

India's merchandise trade deficit rose to $83.4 billion in Jan-Mar from $59.3 billion a year ago. Net services receipts increased to $60.4 billion in the March quarter from $53.3 billion a year ago

Foreign exchange reserves saw accretion of $7.2 billion on a balance of payments basis in the March quarter, compared with an accretion of $8.8 billion a year ago, the RBI said. In FY26, there was depletion of $23.6 billion in the foreign exchange reserves on a balance of bayments basis.

 

Foreign portfolio investment recorded a net outflow of $12.0 billion in the March quarter, higher than the net outflow of $5.9 billion a year ago. For FY26, FPI investment recorded a net outflow of $16.4 billion, against a net inflow of $3.6 billion in FY25.

 

Foreign direct investment recorded a net inflow of $4.2 billion in the March quarter, compared with an inflow of $0.4 billion a year ago. Net inflow under FDI was $6.9 billion during FY26, against a net inflow of $1.0 billion during FY25.

 

India's current account deficit is expected to widen in FY27 because of higher energy prices caused by the war. According to ICRA, the deficit is likely to more than double this year from FY26. "While the recent measures to attract capital flows by the GoI (government) and the RBI are expected to provide some respite, these may remain insufficient unless net FDI inflows improve materially from the current levels," Rahul Agrawal, senior economist at ICRA, said in a note.  End

 

US$1 = INR 95.71

 

Reported by Shubham Rana and Shweta

Edited by Avishek Dutta

 

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