India posted a current account surplus of $13.5 billion or 1.3 per cent of GDP in March quarter 2024-25 as compared with $4.6 billion in the year-ago period mainly on account of surge in services exports and higher remittances, according to RBI data released on Friday.

However, on annual basis, the current account was in deficit at $23.3 billion (0.6 per cent of GDP) during 2024-25, said the ‘India’s Balance of Payments during the Fourth Quarter (January-March) of 2024-25’ released by Reserve Bank of India.

“India’s current account balance recorded a surplus of $13.5 billion (1.3 per cent of GDP) in Q4:2024-25 as compared with $4.6 billion (0.5 per cent of GDP) in Q4:2023-24 and against a deficit of $11.3 billion (1.1 per cent of GDP) in Q3:2024-25,” RBI said.

Balance of Payments is an indicator of the country’s external payment scenario.

Merchandise trade deficit at $59.5 billion in Q4:2024-25 was higher than $52 billion in Q4:2023-24. However, it moderated from $79.3 billion in Q3:2024-25.

“Net services receipts increased to $53.3 billion in Q4:2024-25 from $42.7 billion a year ago. Services exports have risen on a y-o-y basis in major categories such as business services and computer services,” RBI said.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion in Q4:2024-25 from $31.3 billion in Q4:2023-24.

It further said the net outgo on the primary income account, primarily reflecting payments of investment income, moderated to $11.9 billion in Q4:2024-25 from $14.8 billion in Q4:2023-24.

In the financial account, foreign direct investment (FDI) recorded a net inflow of $400 million in Q4:2024-25 as compared to an inflow of $2.3 billion in the corresponding period of 2023-24.

Foreign portfolio investment (FPI) recorded a net outflow of $5.9 billion in Q4:2024-25 as against a net inflow of $11.4 billion in Q4:2023-24.

There was an accretion of $8.8 billion to the foreign exchange reserves (on a BoP basis) in Q4:2024-25 as compared to an accretion of $30.8 billion in Q4:2023-24.

On Balance of Payments (BoP) during 2024-25, RBI said India’s current account deficit at $23.3 billion (0.6 per cent of GDP) during 2024-25 was lower than $26 billion (0.7 per cent of GDP) during 2023-24, primarily due to higher net invisibles receipts.

Net inflow under FDI at $1 billion during 2024-25 was lower than $10.2 billion during 2023-24.

During 2024-25, FPI recorded a net inflow of $3.6 billion, lower than $44.1 billion a year ago.

Commenting on the data, Aditi Nayar, Chief Economist, ICRA said while the current account balance expectedly reported a seasonal surplus in Q4 FY2025, the size of the same overshot expectations, amid a surprise dip in primary income outflows in the quarter.

Amid expectations of a widening in the merchandise trade deficit as well as a moderation in the services trade surplus in Q1 FY2026 vis-a-vis Q4 FY2025, “we expect the current account to revert to a deficit in the ongoing quarter”, she said.

More Like This

Published on June 27, 2025