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India Registers $13.5 Billion Current Account Surplus in Q4 FY25, First in Four Quarters.

Economy Business | Dated: 29 Jun 2025

In a significant turnaround for India’s external balance, the Reserve Bank of India (RBI) reported a current account surplus of USD 13.5 billion in the fourth quarter of the financial year 2024–25 (Q4 FY25), amounting to 1.3% of GDP. This is India’s first quarterly surplus in over a year, driven primarily by strong services exports and record remittances.

🎯 Key Highlights:

  • - India’s strong surplus in Q4 FY25 stands in contrast to a current account deficit of USD 11.3 billion in Q3 FY25 and reflects a sharp external recovery. The same quarter last year (Q4 FY24) had recorded a smaller surplus of USD 4.6 billion. The turnaround highlights improved trade services performance and macroeconomic resilience despite global volatility.

💡 Other Important Facts:

  • (i) Two major contributors to this surplus were booming services exports and robust remittances. Net services earnings reached USD 53.3 billion, significantly higher than the USD 42.7 billion recorded in Q4 FY24. Additionally, remittances rose to a historic high of USD 33.9 billion, a clear indicator of strong inward personal transfers from the Indian diaspora.
  • (ii) Despite this improvement, India’s merchandise trade deficit remained high at USD 59.5 billion, compared to USD 52.6 billion in the previous quarter. However, the primary income account deficit narrowed to USD 11.9 billion from USD 14.8 billion year-on-year, further boosting the overall current account figures.
  • (iii) For the full fiscal year (FY25), India’s current account deficit (CAD) stood at USD 23.3 billion, which is about 0.6% of GDP, showing improvement from 0.7% in FY24. Analysts expect India to shift back to a modest CAD in FY26 as global commodity prices and imports pick up. However, India's strong services sector and capital inflows remain key to maintaining a stable balance of payments.

📚 Test Your Knowledge:

India recently recorded how much current account surplus in Q4 of FY25, marking the first surplus in four quarters?

Correct Answer: USD 13.5 billion

🚀 Quick Recap: