India recorded a current account surplus of $4.7 billion in April 2026, reversing a deficit of $4.8 billion a year earlier. Which combination of factors primarily drove this surplus?

India’s current account structure is characterised by a persistent merchandise trade deficit (India imports far more goods than it exports, particularly crude oil, electronics, and gold). In April 2026, the merchandise deficit was $27.9 billion (exports $44.6 billion, imports $72.5 billion). What converted this into a current account surplus was the combined strength of: (1) Net services exports of $18.6 billion (up from $15.9 billion a year earlier)  driven by India’s large IT, software, BPO, financial services, and travel services exports; and (2) Remittances of $16 billion (up sharply from $9.4 billion a year earlier)  reflecting transfers from the Indian diaspora abroad, particularly from the Gulf, USA, UK, and Canada. Together, services ($18.6B) + remittances ($16B) = $34.6 billion in current account credits, exceeding the $27.9B goods deficit, producing a $4.7B surplus. On the capital account, FDI more than doubled to $11.4 billion.