India's current‑account gap held steady in the fiscal year ending March, with the deficit unchanged at $25.2 billion, or 0.6% of GDP, according to Reserve Bank of India data. That level matches FY 2024‑25 and undercuts economists’ 0.9% forecast, signalling resilience despite external shocks. The flat gap reflects robust services earnings that offset weaker trade balances. Export growth remained modest.

A surprise surplus of $7.1 billion (0.7% of GDP) in the Jan‑Mar quarter lifted the annual picture, beating expectations of a modest deficit. Remittance inflows jumped to $43.5 billion, up from $33.9 billion a year earlier, while services receipts rose to $60.4 billion from $53.3 billion. Emkay economist Madhavi Arora said the remittance surge dispelled worries about the Middle‑East crisis. The inflow boost supports rupee stability.

ICRA’s Rahul Agrawal warns the current‑account deficit could more‑than‑double this fiscal year as global energy prices climb after the West Asia conflict. Recent steps by the government and RBI to lure capital flows may offer some relief, but without a material rise in net FDI inflows the gap will stay under pressure. The balance sheet now hinges on external financing. Policy makers will monitor the trend closely.