Current Account Turns Positive in January–March Quarter; 2024–25 Deficit Narrows to $23.3 Billion

India recorded a current account surplus in the January–March 2025 quarter, echoing last year’s pattern when the final quarter reversed three preceding deficits.

The current account posted a $13.5 billion surplus, or 1.3% of GDP, in January–March 2025, up from $4.6 billion, or 0.5% of GDP, a year earlier. In contrast, the October–December 2024 quarter saw a $11.3 billion deficit, or 1.1% of GDP.

For the full 2024–25 fiscal year, the current account deficit narrowed to $23.3 billion, or 0.6% of GDP, compared with $26 billion, or 0.7%, in the previous year. The improvement was primarily driven by higher net invisibles receipts, particularly from services and personal transfers, according to government data.

Despite the narrower deficit, capital inflows were markedly lower. Net foreign direct investment fell sharply to $1.0 billion in 2024–25 from $10.2 billion a year ago. Foreign portfolio investment also declined, with net inflows of $3.6 billion, well below the $44.1 billion recorded in 2023–24.