Published: 30 January 2026PIB / PRS IndiaEconomy
Economic Survey: External Sector Resilient — CAD at 0.8% of GDP, Forex Reserves USD 701 Billion
The Economic Survey 2025-26 paints a picture of external sector resilience. India's current account deficit (CAD) in H1 FY26 stood at 0.8% of GDP, improving from 1.3% in H1 FY25. Total exports in FY25 reached USD 825.3 billion (6.1% YoY growth), with non-petroleum exports at a historic high of USD 374.3 billion.
India's merchandise export share in global trade rose to 1.8% (from 1% in 2005), while services export share reached 4.3% (from 2% in 2005). India ranked 3rd in the Global South for trade partner diversification, with a trade diversity score higher than all Global North economies.
Foreign exchange reserves stood at USD 701.4 billion as of January 16, 2026, covering approximately 11 months of imports and 94% of external debt. Gross FDI inflows during April-November 2025 were USD 64.7 billion. India ranked 4th globally for greenfield investment in 2024 with over 1,000 projects, and was the largest destination for greenfield digital investments during 2020-24.
Remittances reached USD 135.4 billion in FY25, making India the world's largest recipient of remittances. In merchandise trade, electronics exports during April-December FY26 rose sharply by 35.1% YoY.
0Mains angle
Q: Assess the Economic Survey 2025-26's findings on India's external sector resilience. Discuss key indicators including current account deficit, forex reserves, exports, FDI, and remittance performance.
Answer (50 words):
Economic Survey 2025-26 reports H1 FY26 current account deficit at 0.8 percent of GDP, improving from 1.3 percent. Forex reserves reached 701.4 billion dollars covering 11 months imports. FY25 exports hit 825.3 billion dollars; gross FDI April-November 2025 was 64.7 billion dollars; remittances reached 135.4 billion dollars, world's largest.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / PRS India
Practice MCQ from this story
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Linked questionEasy
What were India's foreign exchange reserves as of January 16, 2026, according to the Economic Survey 2025-26?
Explanation · Correct answer DOption D (USD 701.4 billion) is correct. The Economic Survey 2025-26, released by the Ministry of Finance (indiabudget.gov.in), reports India's foreign exchange reserves at USD 701.4 billion as of January 16, 2026. This figure represents an increase from USD 668.3 billion at end-March 2025 and covers approximately 11 months of imports.
Frequently asked questions
What is India's current account deficit according to Economic Survey 2025-26?
India's **Current Account Deficit (CAD) improved to 0.8% of GDP in H1 FY26**, from 1.3% in H1 FY25, reflecting a resilient external sector.
What are India's forex reserves according to Economic Survey 2025-26?
India's **foreign exchange reserves stood at USD 701 billion** as per Economic Survey 2025-26, reflecting strong external sector resilience.
What were India's total exports in FY25?
**Total exports in FY25 reached USD 825.3 billion** with 6.1% year-on-year growth, with non-petroleum exports at a record high.
What is the significance of India's improving CAD?
India's **CAD improving to 0.8% of GDP** from 1.3% reflects better trade balance, strong services exports, and robust remittances — reducing external vulnerability.
Why are India's forex reserves of USD 701 billion significant?
**Forex reserves of USD 701 billion** provide India with import cover of approximately **11 months** — a crucial buffer against external shocks, currency volatility, and global financial instability.
