mumbai, June 28 -- After three deficit quarters, India reported a current account surplus for January-March, but is expected to slip back into a deficit in the ongoing first financial quarter of 2025-26. The fourth quarter of FY25 saw a current account surplus of 1.3% of gross domestic product, against a deficit of 1.1% for the third quarter, data released by the Reserve Bank of India (RBI) on Friday showed. The surplus improved to $13.5 billion in the latest March quarter from a surplus of $4.6 billion in the same period last year. In the December quarter, India recorded a current account deficit of $11.3 billion. The current account measures the flow of goods, services and investments into and out of the country. A surplus indicates more money entered India than it went out, signalling improved external stability. A deficit would have added pressure on the rupee and inflated costs for businesses. Economists said a significant jump in services receipts and strong remittances drove the current account surplus in the fourth quarter. While they had estimated a surplus in the current account balance, the extent of it came as a surprise. Per RBI data, net services receipts increased to $53.3 billion in the latest fourth quarter from $42.7 billion a year ago, and services exports rose in major categories such as business services and computer services. That apart, personal transfer receipts, primarily comprising remittances by Indians employed overseas, rose to $33.9 billion from $31.3 billion a year ago. "We had thought that a steep drop in oil prices in the January to March quarter would weigh sharply on remittances, but that did not happen as much," said Kanika Pasricha, chief economic advisor, Union Bank of India. When oil prices fall, remittances into oil-importing countries such as India decline as economic activity loses steam in oil-producing nations where migrants work. "While the spike in services exports was well known, the pickup in remittances has been slightly more than our estimates. Hence, the current account surplus we were expecting at around the $9.5 billion mark has come in higher at $13.5 billion," Pasricha added....