Did India’s Service Exports Really Surge 14% in Q4 FY25?
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Synopsis
India's services exports have experienced a significant boost, reaching $102 billion with a remarkable 14% growth year-on-year. This surge highlights the resilience of the country's service sector amidst global economic changes, according to a recent report by Niti Aayog.
Key Takeaways
- Service exports reached $102 billion in Q4 FY25.
- 14% year-on-year growth noted in service exports.
- Total trade for FY25 was $1.73 trillion.
- Electrical machinery exports increased by 38.2%.
- Exports to the USA grew 27% year-on-year.
New Delhi, Oct 6 (NationPress) India's service exports soared to $102 billion, reflecting a remarkable 14 percent year-on-year (YoY) growth, as reported by the think tank Niti Aayog.
Service imports also saw an increase, totaling $48 billion, which is up 4.2 percent, according to the report.
The total trade for fiscal year 2025 reached $1.73 trillion, with exports standing at $823 billion and imports at $908 billion.
Key export categories included mineral fuels, electrical machinery, and nuclear reactors, with electrical machinery witnessing a significant 38.2 percent increase.
Major imports consisted of mineral fuels, electrical machinery, pearls, and nuclear reactors.
Notably, inorganic chemicals experienced an impressive 82.1 percent growth, while nuclear reactor imports rose by 18.1 percent, the report indicated.
In Q4 FY25, India's exports to the UAE, Netherlands, UK, China, and Singapore saw a decline, while exports to the USA grew by 27 percent year-on-year.
During this quarter, imports from China, Russia, UAE, USA, Iraq, Saudi Arabia, and Singapore increased.
The primary inflow was led by gold from the UAE and electronics from China.
Earlier today, data compiled by S&P Global indicated that India's services sector activity remained stable in September, with the HSBC India Services Purchasing Managers’ Index (PMI) recorded at 60.9.
Pranjul Bhandari, Chief India Economist at HSBC, noted that business activity in the services sector stayed robust, albeit slightly below the peak observed in August.
“While most trackers moderated, there is no indication from the survey suggesting a significant decline in growth momentum in services,” she stated.
“In fact, the Future Activity Index reached its highest level since March, reflecting growing optimism among services companies regarding business prospects,” she added.
The report concluded that the PMI reading indicated continued stability in India's services economy, bolstered by strong demand, new business activity, and a positive outlook among firms.
Point of View
It's vital we recognize the positive trajectory of India's services exports. The reported growth reflects strong resilience in the sector, indicating a robust economic recovery. It is crucial for policymakers to support this momentum while addressing challenges that may arise in the global market.
NationPress
06/10/2025
Frequently Asked Questions
What is the total value of India's service exports in Q4 FY25?
India's service exports reached $102 billion in Q4 FY25.
How much did service imports increase?
Service imports totaled $48 billion, marking a 4.2% increase.
What was the total trade value for fiscal year 2025?
The total trade for fiscal year 2025 reached $1.73 trillion.
Which categories saw significant export growth?
Significant export categories included mineral fuels and electrical machinery, with the latter increasing by 38.2%.
How did exports to the USA perform?
Exports to the USA saw a year-on-year growth of 27%.
