New Delhi: India logged a current account surplus of USD 4.7 billion in April 2026, a sharp turnaround from a USD 4.8 billion deficit in April 2025, the Reserve Bank of India (RBI) said. The improvement was led by higher services receipts and increased net transfers, even as the merchandise trade gap widened slightly.
Preliminary BoP figures show exports rose to USD 44.6 billion in April from USD 38.7 billion a year earlier, while imports climbed to USD 72.5 billion from USD 65.8 billion. The merchandise trade deficit was USD 27.9 billion, marginally above last year’s USD 27.1 billion.
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Net services receipts expanded to USD 18.6 billion in April 2026 from USD 15.9 billion a year earlier, with services exports at USD 37.0 billion and services imports at USD 18.4 billion. Net transfer receipts jumped to USD 16.0 billion from USD 9.4 billion in April 2025, providing an important boost to the current account.
On the capital account, India saw a net outflow of USD 11.3 billion in April 2026 versus a net inflow of USD 5.3 billion in April 2025. Net foreign direct investment rose to USD 7.4 billion from USD 1.6 billion a year earlier, while foreign portfolio investors recorded a net outflow of USD 8.7 billion in the month.
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Because of these offsetting capital movements, the overall balance of payments showed a deficit of USD 6.6 billion in April 2026, compared with a surplus of USD 0.5 billion in April 2025. In the January–March quarter of 2025–26, India had posted a current account surplus of USD 7.1 billion (0.7% of GDP), down from USD 13.7 billion (1.4% of GDP) a year earlier.
The RBI also said that, going forward, monthly BoP data for the reference month will be released by the 15th day (or earlier) of the second subsequent month.
What is a current account surplus and what it means for India?
What it is: The current account tracks cross‑border flows of goods, services, income (such as remittances and investment income) and unilateral transfers. A surplus means the country earned more from these transactions than it spent abroad in that period.
Short‑term impact: A surplus can ease pressure on foreign exchange reserves, reduce the need for external borrowing, and support the rupee. It also signals that net external earnings (services exports, remittances) are helping offset the merchandise trade deficit.
Medium‑term implications: Sustained surpluses improve external vulnerability metrics and provide policy space for the central bank and government. However, large or persistent surpluses can reflect weak domestic demand or slow import‑intensive investment and are not automatically a sign of broad economic strength.
For India now: The April surplus — propelled by services and transfers — offers temporary relief for the external account and could help stabilise the currency and reserves. But the wider BoP deficit and sizeable portfolio outflows underscore continued sensitivity to global capital flows; policymakers will watch whether services receipts and FDI growth can sustain external resilience.
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