India Current Account Unexpectedly Records Surplus
2026-06-08 13:11
By
Andre Joaquim
1 min. read
India recorded a current account surplus of $7.1 billion in the final quarter of the 2026 financial year, narrowing from the surplus of $13.7 billion but contrasting sharply with the market expectations that it would swing to a deficit of $15 billion.
Goods deficits were expected to have grown sharply in the period as higher energy costs were set to inflate imports into the Indian economy, lifted by the war in Iran and India's partial pivot away from Russian energy to escape the mounting tariffs from the United States.
The goods account recorded a deficit of $83.4 billion, widening sharply from the gap of $59.3 billion, as debits surged by 12% to $196.6 billion.
Still, the services surplus widened to $60.4 billion from $53.3 billion, amid a 10% increase in credits to $111.1 billion.
The secondary income surplus surged to $41.3 billion from $31.5 billion, amid a 33.9% surge in credits through workers' remittances to $33.9 billion.