India Posts Current Account Surplus as Services Exports and Remittances Surge

India recorded a current account surplus of about $4.7 billion in April 2026, a notable turnaround from a deficit of roughly $4.8 billion a year earlier, according to preliminary data from the Reserve Bank of India. The improvement came despite a wider merchandise trade deficit of about $27.9 billion, as exports rose to $44.6 billion and imports increased to $72.5 billion. The surplus was underpinned by resilient services trade, with net services exports strengthening to $18.6 billion from $15.9 billion, and by a surge in remittances from Indians working abroad, which climbed to $16 billion from $9.4 billion. The net income deficit also narrowed. On the capital account, foreign direct investment more than doubled to $11.4 billion, though net portfolio outflows widened and banking capital turned negative. The figures underscore how India's growing strength in services exports and steady remittance inflows continue to cushion its external accounts against a persistent goods trade gap driven partly by energy and other imports. A healthier external balance supports the rupee and gives policymakers more room to manage the economy amid global uncertainty tied to geopolitics and volatile commodity prices.