India current account posts 0.7% GDP surplus, FY26 deficit $25.2B
India's current account swung to a surplus of 0.7% of GDP in the fourth quarter of FY26, bouncing back from a $13.2 billion deficit last quarter, according to data from the Reserve Bank of India released today.
It's a big step up from the same period last year, but for the full fiscal year, the deficit actually grew slightly, now at $25.2 billion (still steady at 0.6% of GDP).
Service exports push receipts to $60.4B
What made this turnaround possible? Mainly a surge in service exports—especially computer and business services—which pushed net receipts to $60.4 billion this quarter (up from $53.3 billion last year).
Remittances also jumped, reaching $43.5 billion as more funds were sent home amid tensions in West Asia.
FDI up $4.2B FPIs withdrew $12B
Foreign direct investment picked up sharply ($4.2 billion), but foreign portfolio investors pulled out about $12 billion during the fourth quarter of FY26.
To keep foreign money coming in, the Reserve Bank of India and the government have relaxed foreign portfolio investment rules and extended tax breaks on sovereign bonds, hoping to make India more attractive for global investors.