Q4 Current Account Surplus at 1.3% on Strong Services

Net FDI inflows just $1 billion in FY25 vs $10 billion in FY24

- FE BUREAU

INDIA'S CURRENT ACCOUNT balance recorded a strong surplus of $13.5 billion, or 1.3% of the gross domestic product (GDP) in Q4 of FY25, driven by strong net services receipts and a moderation in net outgo on primary income account, the Reserve Bank of India (RBI) said on Friday.

This marked a significant improvement from the surplus of $4.6 billion (0.5% of GDP) in the year-ago quarter (Q4FY24), and a sharp reversal from the current account deficit of $11.3 billion (1.1% of GDP) recorded in the third quarter of last fiscal (Q3FY25).

Despite the surplus, Q4FY25 saw a rather modest accretion of $8.8 billion to the foreign exchange reserves in the quarter, on a balance of payment basis, reflecting subdued capital inflows. In Q4FY25, the accretion was a more robust $30.8 billion, while Q3FY25 witnessed a sharp depletion of $37 billion, owing to net capital outflows.