FX.co ★ India Current Account Unexpectedly Records Surplus

India posted a current account surplus of $7.1 billion in the final quarter of the 2026 financial year, down from $13.7 billion in the previous quarter but sharply outperforming market expectations of a $15 billion deficit. Analysts had anticipated a significantly wider goods trade deficit, with higher energy prices expected to boost import costs amid the war in Iran and India’s partial shift away from Russian energy to avoid escalating US tariffs.

The goods account registered a deficit of $83.4 billion, a marked deterioration from $59.3 billion, as debits rose 12% to $196.6 billion. However, this was partly offset by a stronger performance in services: the services surplus expanded to $60.4 billion from $53.3 billion, driven by a 10% increase in credits to $111.1 billion. In addition, the secondary income surplus jumped to $41.3 billion from $31.5 billion, supported by a 33.9% surge in workers’ remittance credits, which reached $33.9 billion.