Current Account Swings to Surplus After Three Quarters

Posts excess of $13.5 billion, or 1.3% of GDP, during the fourth quarter of FY25

- ABHIJIT LELE

India's current account balance posted a surplus of $13.5 billion, or 1.3 per cent of gross domestic product (GDP), during the fourth quarter of 2024-25 (Q4FY25). This surplus comes after a gap of three quarters of deficit, reflecting the contribution of a surge in services exports, latest data released by the Reserve Bank of India (RBI) showed.

There was a current account surplus of $4.6 billion (0.5 per cent of GDP) during Q4FY24. Current Account Deficit (CAD) was $11.3 billion (1.1 per cent GDP) during the quarter ended December 2024 (Q3FY25).

For FY25, CAD moderated to $23.3 billion (0.6 per cent of GDP) from $26 billion (0.7 per cent of GDP) in FY24. This was on the back of higher net invisible receipts.