The Reserve Bank has informed us that India’s current account deficit has moderated to 30.1 billion dollars or 1% of GDP in the period of April-December 2025 from 36.6 billion dollars in the same period a year ago. The Net foreign direct investment (FDI inflow has increased to three billion dollars in April –  December 2025, up from 0.6 billion dollars a year ago. Foreign portfolio investment (FPI), however, recorded net outflows of 4.3 billion dollars as against net inflows of 9.4 billion dollars for the same period a year ago.

 

According to the RBI, foreign exchange reserves depleted by 30.8 billion dollars (on Balance of Payments Basis) in April-December 2025, as compared with a depletion of 13.8 billion dollars a year ago. As per the report titled ‘Developments in India’s Balance of Payments during the Third Quarter (October-December) of 2025-26’ released by the RBI today, services exports have risen on an annual basis in major categories such as computer services and other business services.