The surplus was lower than the $13.7 billion, or 1.4% of GDP, recorded in the corresponding quarter of the previous year.
The country’s merchandise trade deficit widened to $83.4 billion during the quarter, compared with $59.3 billion a year earlier, reflecting higher import outgo. However, this was partly offset by a rise in net services receipts to $60.4 billion from $53.3 billion in the year-ago period, driven by growth in computer services and other business services exports.
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As per the central bank data, remittance inflows remained a key pillar of external stability, with personal transfer receipts, largely including money sent home by Indians working overseas, rising to $43.5 billion in the March quarter from $33.9 billion a year ago. Meanwhile, net outgo under the primary income account declined to $11.1 billion from $11.9 billion, providing additional support to the current account balance.
Capital flows in Q4 FY26
According to RBI data, net foreign direct investment (FDI) inflows stood at $4.2 billion during the quarter, higher than $0.4 billion in the year-ago period.
Foreign portfolio investors (FPIs) recorded a net outflow of $12 billion in the March quarter, compared with a net outflow of $5.9 billion a year earlier.
Non-resident Indian (NRI) deposits registered net inflows of $3.3 billion, up from $2.8 billion in the corresponding quarter of FY25. Net inflows through external commercial borrowings (ECBs) amounted to $3.6 billion, compared with $7.5 billion a year ago.
Foreign exchange reserves increased by $7.2 billion on a balance of payments basis during the quarter, compared with an accretion of $8.8 billion in the year-ago period.
FY26 balance of payments
For the financial year 2025-26, India’s current account deficit stood at $25.2 billion, equivalent to 0.6% of GDP, compared with a deficit of $22.9 billion, or 0.6% of GDP, in FY25.
The merchandise trade deficit widened to $337.3 billion in FY26 from $286.9 billion a year earlier. Net services receipts rose to $216.6 billion from $188.8 billion, while secondary income receipts increased to $143.6 billion from $123.5 billion.
Net invisibles receipts stood at $312 billion in FY26, higher than $264 billion in the previous year, primarily on account of net services receipts and net personal transfers.
Capital flows in FY26
Net FDI inflows increased to $6.9 billion in FY26 from $1 billion in FY25. FPIs recorded net outflows of $16.4 billion during FY26, compared with net inflows of $3.6 billion in the previous year.
Foreign exchange reserves declined by $23.6 billion on a balance of payments basis in FY26, compared with a depletion of $5 billion in FY25.