How Are India's Services Exports Thriving Amid Global Challenges?
Click to start listening
Synopsis
India’s services sector shines brightly amid global economic challenges, showcasing resilience against muted demand and geopolitical tensions. The Federation of Indian Export Organisations highlights the country's potential for strong export growth with supportive policies and strategic investments.
Key Takeaways
- India's services sector is a key growth driver.
- Exports reached $71.12 billion in May 2025.
- Strong performance in software and consultancy.
- Ongoing support for MSMEs is vital.
- Investment in digital infrastructure is crucial.
New Delhi, June 16 (NationPress) India’s recent trade statistics showcase the strong performance of its services sector, which continues to serve as a shield against the difficulties posed by weakened global demand, geopolitical tensions, and high interest rates, according to the Federation of Indian Export Organisations (FIEO) on Monday.
In spite of global economic challenges, India’s total exports (including both merchandise and services) showed remarkable resilience, achieving a growth rate of 2.8 percent in May 2025.
Overall exports reached $71.12 billion, up from $69.20 billion in May 2024.
“This increase was largely fueled by the sustained strength in services exports, especially in software, consultancy, and financial services,” stated SC Ralhan, President of FIEO.
“Exporters are effectively adjusting to a challenging global landscape. Their ability to maintain export growth despite logistical issues, particularly in the Middle East, highlights the sector’s flexibility and the support from policies,” Ralhan added.
Total imports (goods + services) experienced a slight decrease to $77.75 billion, compared to $78.55 billion in May 2024, indicating stable domestic demand for essential goods and services.
Ralhan emphasized that the reduction in merchandise imports could signal a growing success in import substitution and the enhancement of domestic capabilities, in line with the government’s initiative for self-reliance.
To ensure sustained and enhanced export growth, the FIEO President stressed the critical need for ongoing assistance to MSMEs through the Interest Equalisation Scheme; swift Free Trade Agreement negotiations to improve market access, particularly with the US; the simplification and digitization of trade processes to lower transaction costs; and the facilitation of seamless e-commerce exports by addressing various procedural challenges.
Looking forward, Ralhan urged the government to maintain a keen focus on sector-specific challenges and leverage India’s growing services strength by investing in digital infrastructure, talent development, and targeted global marketing.
“With appropriate policy measures and the expectation of stabilizing global conditions in the second half of 2025, India is poised to regain a robust export growth trajectory,” he remarked.
Point of View
India’s trade resilience is commendable. The government must continue supporting the services sector while fostering self-reliance. It is crucial to maintain focus on sector-specific needs to ensure sustained growth and competitiveness in the global market.
NationPress
16/06/2025
Frequently Asked Questions
What is the current status of India's services exports?
India’s services exports have shown remarkable resilience, with a 2.8% growth in May 2025, driven by strong demand in software and consultancy.
How are global challenges affecting India's exports?
Despite global economic headwinds, India’s overall exports, including services, have maintained growth, demonstrating the sector's adaptability.
What measures are needed to boost India's export growth?
Continued support for MSMEs, expedited Free Trade Agreement negotiations, and simplification of trade procedures are essential for enhancing export growth.
