India Posts $13.5 Billion Current Account Surplus in Q4 FY25

India has achieved a notable improvement in its external account position by posting a $13.5 billion current account surplus—equal to 1.3% of GDP—for the final quarter of FY25, as per the latest figures released by the Reserve Bank of India. This development marks a sharp contrast to the previous Q3

Shivam Last updated on June 28th, 2025 02:27 pm

In a significant turnaround for India’s external sector, the country reported a current account surplus of $13.5 billion—equivalent to 1.3% of GDP—for the fourth quarter of FY25, according to data released by the Reserve Bank of India (RBI). This marks a stark reversal from the $11.3 billion deficit recorded in the previous quarter (Q3 FY25) and represents a notable improvement compared to the $4.6 billion surplus in Q4 FY24.

Why in News?

The RBI released its balance of payments data for Q4 FY25 on June 28, 2025, showing a strong current account performance. This is India’s first current account surplus after several quarters of deficit, highlighting improvements in services exports and remittances. The data comes at a time when policymakers are closely monitoring external vulnerabilities amid global financial uncertainties.

Key Highlights from RBI’s Q4 FY25 Data

Current Account Balance

Surplus of $13.5 billion (1.3% of GDP) in Q4 FY25
Compared to $4.6 billion surplus (0.5% of GDP) in Q4 FY24
Reversal from $11.3 billion deficit (1.1% of GDP) in Q3 FY25

Merchandise Trade Deficit

$59.5 billion in Q4 FY25
Higher than Q4 FY24 ($52 billion) but lower than Q3 FY25 ($79.3 billion)

Net Services Receipts

Rose to $53.3 billion in Q4 FY25 from $42.7 billion in Q4 FY24
Growth led by computer services and business services

Primary Income Outflows

Moderated to $11.9 billion in Q4 FY25
Compared to $14.8 billion in Q4 FY24
Includes payments on foreign investments in India

Personal Transfers (Remittances)

Increased to $33.9 billion from $31.3 billion YoY
A key contributor to current account surplus

Foreign Direct Investment (FDI)

Net inflow of $0.4 billion in Q4 FY25
Down from $2.3 billion in Q4 FY24

Static Concepts and Background

Current Account: Measures the flow of goods, services, primary income, and transfers.
Surplus: Indicates that a country is earning more from exports and transfers than it is spending on imports and payments.
Significance: A surplus reduces reliance on external borrowing and strengthens the rupee’s stability.
RBI’s Role: Publishes Balance of Payments (BoP) data quarterly to track India’s external economic health.