Mumbai, June 9 -- India reported a current account surplus of 0.7% of gross domestic product (GDP) in the March quarter of FY26, down from 1.4% a year earlier, according to Reserve Bank of India (RBI) data released on Monday. The March-quarter(Q4FY26) surplus marked a reversal from the $13.2 billion deficit recorded in the preceding quarter, although it was lower than the year-ago surplus of $13.7 billion.For the full year, current account deficit rose in absolute terms to $25.2 billion from $22.9 billion a year ago, but held steady at 0.6% of GDP.The current account tracks the flow of goods, services and investment income between India and the rest of the world. A surplus indicates that inflows exceeded outflows.According to RBI data, net services receipts rose to $60.4 billion in Q4 from $53.3 billion a year earlier, led by computer and business services exports. Personal transfer receipts, mainly remittances from Indians working overseas, increased to $43.5 billion from $33.9 billion despite concerns that the West Asia conflict could disrupt such flows. "The positive surprise on the current account was due to remittances. The West Asia crisis may have resulted in precautionary transfer of funds," said Gaura Sengupta, chief economist, IDFC First Bank, adding that trade deficit remained range-bound as crude oil import volumes declined in March. "On the capital account, the surplus was partly due to the $20 billion buy-sell swaps conducted by the RBI in Q4FY26," she added.In the financial account, net foreign direct investment (FDI) inflows increased to $4.2 billion in Q4 from $0.4 billion a year earlier. Foreign portfolio investors (FPIs), however, pulled out a net $12 billion during the quarter, compared with net outflows of $5.9 billion in the year-ago period....