Fri Jun 27 13:36:32 UTC 2025: **Summary:**

The Reserve Bank of India (RBI) announced on June 27, 2025, that India’s current account balance recorded a surplus of $13.5 billion (1.3% of GDP) in the January-March quarter of 2024-25, a significant increase from $4.6 billion (0.5% of GDP) in the same period the previous year. While the merchandise trade deficit increased year-on-year, higher net service receipts, particularly from business and computer services, contributed to the surplus. For the entire fiscal year 2024-25, India’s current account deficit was $23.3 billion (0.6% of GDP), lower than the $26 billion (0.7% of GDP) in 2023-24.

**News Article:**

**India’s Current Account Surges into Surplus, Bolstered by Strong Service Exports**

**Mumbai – June 27, 2025** – India’s current account balance has posted a significant surplus of $13.5 billion (1.3% of GDP) for the January-March quarter of 2024-25, according to a Reserve Bank of India (RBI) announcement today. This marks a substantial improvement from the $4.6 billion (0.5% of GDP) surplus recorded in the same quarter last year. The positive shift reflects a strong performance in the service sector, which offset a widening merchandise trade deficit.

The RBI report, “Developments in India’s Balance of Payments during the Fourth Quarter (January-March) of 2024-25,” revealed that the merchandise trade deficit increased to $59.5 billion from $52 billion in the corresponding period of the previous year. However, robust net service receipts, fueled by a surge in business and computer services exports, more than compensated for the trade shortfall. Net service receipts climbed to $53.3 billion, a notable increase from $42.7 billion a year ago.

Looking at the entire fiscal year, India’s current account deficit stood at $23.3 billion (0.6% of GDP) for 2024-25, a decrease from the $26 billion (0.7% of GDP) recorded in 2023-24. This overall improvement highlights the growing importance of India’s service sector in contributing to the nation’s economic stability.

Economists are cautiously optimistic about the implications of this positive trend, suggesting that it could provide further support to the Indian rupee and enhance investor confidence in the country’s economic outlook. The RBI’s report underscores the importance of continued focus on boosting exports and fostering a competitive environment for Indian businesses to maintain this positive momentum.

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