India posts current account surplus of $4.7B in April
What's the story
India recorded a current account surplus of $4.7 billion in April 2026, according to preliminary data released by the Reserve Bank of India (RBI) today. This is a significant improvement from the deficit of $4.8 billion seen during the same period last year. The positive development comes despite a widening merchandise trade deficit and increased foreign portfolio investment (FPI) outflows during the month under review.
Trade balance
Merchandise trade deficit widens to $27.9B
The merchandise trade deficit widened to $27.9 billion in April 2026, from $27.1 billion a year ago. This was due to an increase in both exports and imports during the period under review. Exports rose to $44.6 billion from $38.7 billion while imports increased to $72.5 billion from $65.8 billion last year.
Service sector impact
Net services exports and transfers
The current account surplus was bolstered by a sharp rise in net services exports and transfers. Net services exports rose to $18.6 billion in April 2026, up from $15.9 billion a year ago. Meanwhile, net transfers (mostly remittances) surged to $16 billion from $9.4 billion last year, further strengthening India's current account position for the month under review.
Investment trends
Mixed picture for capital account
On the capital account, net foreign direct investment (FDI) surged to $7.4 billion in April 2026 from $1.6 billion a year ago. Gross FDI inflows into India more than doubled to $11.4 billion from $5 billion last year. However, net foreign portfolio investment (FPI) recorded an outflow of $8.7 billion during the month compared with an outflow of $2.1 billion in April 2025.