Did India's October services exports surpass goods exports by 11%?
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Synopsis
In a surprising turn of events, India's services exports have surged past goods exports in October, indicating a robust recovery in the services sector. With a record trade surplus and significant gold import growth, this report explores the implications for India's economy and future trade dynamics.
Key Takeaways
- Services exports surpassed goods exports by 11% in October.
- Services trade surplus reached an all-time high of $20 billion.
- Gold imports surged by 58% year-on-year during the festive period.
- India's goods trade deficit widened to $41.7 billion.
- Exports to the US contracted for the second consecutive month.
New Delhi, Nov 18 (NationPress) In October, India's services exports reached $38.5 billion, overtaking goods exports at $34.4 billion by a margin of 11 percent, marking a recovery after several months of decline, according to a report released on Tuesday.
The service sector's exports averaged $37.5 billion during the September-October period, compared to $33 billion in the initial eight months of the year. Additionally, the services trade surplus peaked at an unprecedented $20 billion for the month, as noted by HSBC Global Investment Research.
Gold imports notably increased by 58 percent year-on-year during this period, with the Diwali month witnessing a rise in gold import expenses to $14.7 billion, up over $5 billion from the previous month.
On the other hand, core imports (excluding oil and gold) saw a decline on a sequential basis after a significant increase the prior month, although categories such as electronics, machinery, and machine tools experienced rapid growth.
The rise in electronics imports was attributed to cuts in GST rates, according to the report.
India's goods trade deficit expanded to an all-time high of $41.7 billion in October, up from $32.2 billion in September, reflecting expectations that the trade deficit would grow due to festive demand.
After seasonal adjustments, the trade deficit was recorded at $33.4 billion, compared to $31.1 billion in September. The report also pointed out a contraction in exports to the US, which fell on a year-on-year basis for the second consecutive month (-12 percent in September and -8.6 percent in October).
Furthermore, exports to non-US markets have also slowed down after a 11 percent year-on-year increase in September, mirroring trends observed in the first half of 2025.
This decline may be indicative of heightened competition among nations aiming to diversify their exports following recent tariff updates.
Point of View
It is crucial to recognize the significant rebound in India's services exports, which not only highlights the resilience of this sector but also underscores the changing dynamics of global trade. While the widening goods trade deficit poses challenges, the strong performance in services offers a glimmer of hope for sustainable economic growth in the country.
NationPress
18/11/2025
Frequently Asked Questions
What are India's services exports for October 2023?
India's services exports for October 2023 were $38.5 billion.
How much did goods exports amount to in October 2023?
Goods exports in October 2023 amounted to $34.4 billion.
What was the trade surplus for India's services sector in October?
The trade surplus for India's services sector reached an all-time high of $20 billion in October.
What caused the increase in gold imports during October?
The increase in gold imports during October was attributed to festive demand, with a rise of 58% year-on-year.
How did India's trade deficit change in October?
India's goods trade deficit widened to a record $41.7 billion in October, up from $32.2 billion in September.
