Services exports rise 14% to record $387.5 billion

NEW DELHI/MUMBAI: India's services exports were estimated to have increased by 13.6% to a record $387.5 billion during the last financial year, driven by booming activity in global capability centres, which boosted receipts from "other business services'', and by steady growth in IT and IT-enabled services.

The latest data released by RBI pegged services exports at $35.6 billion in March, 18.6% higher than the corresponding month last year. As a result, India's total exports, comprising goods and services, reached $824.9 billion in 2024-25, 6% higher than the previous year's level of $778.1 billion. The number for the last fiscal year was also $4 billion higher than the estimate put out by the commerce department, when it released the provisional data last month.

Separate data released by RBI showed that India's current account continued to benefit from robust net invisibles - transactions that do not involve physical goods. For the quarter ended Dec 2024, net invisible receipts stood at $67.7 billion, covering 84% of the country's trade deficit. This marked a 10.6% increase from $61.2 billion in the same period a year earlier.

Invisible receipts for the quarter amounted to $151.8 billion, while payments were $81.1 billion. Over the first nine months of the fiscal year, receipts reached $427 billion against payments of $237 billion, resulting in a net inflow of $190 billion. This was a 17% increase over the net receivables of $162 billion over the same period in FY24.

Services, particularly in telecom, computer and information technology, remained the primary engine. The segment contributed $48.3 billion in receipts in Q3 FY25, accounting for 32% of all invisible earnings. Private transfers - mainly remittances from overseas Indians - formed the next largest source, at $36 billion or over 24% of the total, maintaining the same share as last year. However, volumes are growing: Inward remittances by overseas workers rose 20% year on year in the Dec quarter to $23.6 billion, up from $19.6 billion. Over the nine-month period, they totalled $63 billion, a 13% rise.

Stay informed with the latest business news, updates on bank holidays and public holidays.

AI Masterclass for Students. Upskill Young Ones Today!– Join Now