FX.co ★ India Swings to $7.1B Current Account Surplus in Q1 2026, Reversing Late-2025 Deficit

India’s external balances saw a sharp improvement at the start of 2026, as the country’s current account moved into surplus in the first quarter. According to data updated on 8 June 2026, India posted a current account surplus of $7.10 billion in Q1 2026, a marked reversal from the $13.20 billion deficit recorded in the fourth quarter of 2025.

The shift from a sizable deficit at the end of 2025 to a surplus in early 2026 underscores a significant turnaround in India’s external position. While the data release does not specify the underlying drivers, the movement into surplus suggests a more favorable balance between exports and imports of goods and services, income flows, and transfers during the first three months of 2026.

Markets and policymakers will be watching subsequent quarters to see whether this surplus signals the start of a more sustained improvement in India’s current account or reflects one-off factors specific to the beginning of the year. For now, the Q1 2026 figures mark a notable strengthening in India’s headline external accounts relative to late 2025.