Has India’s services exports surge lifted the trade surplus to $80 billion in FY26?
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Synopsis
India's services exports have surged by 8.7% YoY in FY26, boosting the trade surplus to $80 billion. With projections indicating continued growth, what does this mean for India's economic landscape? Explore the dynamics of foreign direct investment and sectoral performance that shape this remarkable achievement.
Key Takeaways
- Services exports increased by 8.7% YoY.
- Trade surplus reached $80 billion.
- Gross FDI inflows rose 33%.
- Net FDI inflows climbed to $21.4 billion.
- Manufacturing exports saw an 8.5% rise.
New Delhi, Oct 10 (NationPress) India's services exports have surged by 8.7 percent year-on-year (YoY) in the initial five months of FY26, propelling the trade surplus to $80 billion, an increase from $68 billion during the corresponding period last year, according to a report published on Friday.
The ratings agency CareEdge Ratings, in their analysis, projected an 8.2 percent growth in services exports for FY26, noting that "India’s services exports are expected to continue as a vital pillar for the external sector."
Nonetheless, recent changes, including the rise in H-1B visa fees and ongoing global uncertainties, necessitate careful observation, the report highlighted.
Additionally, gross foreign direct investment (FDI) inflows surged by 33 percent year-on-year in the first four months of FY26. The net FDI inflows, after deductions for repatriations, leaped 96 percent to $21.4 billion during this timeframe, the ratings agency reported.
This significant uptick in inward FDI resulted in net inflows (inflows less outflows) of $10.8 billion during this period, compared to $3.5 billion a year ago, according to the report.
India's non-petroleum exports have remained relatively stable, rising by 7.3 percent (YoY) in the fiscal year thus far, although a steep decline in petroleum exports has impacted the overall export figures.
Manufacturing exports witnessed a robust increase of 8.5 percent, supported by strong performance in the exports of engineering goods (up 5.4 percent) and electronic goods (up 39.8 percent), as per the ratings agency.
Within the engineering goods sector, the growth in the fiscal year to date has been primarily driven by machinery and instruments (up 11.8 percent) and ferrous and non-ferrous metals (up 6.4 percent).
The significant growth in electronic goods was primarily attributed to telecom instruments, which experienced a remarkable growth of 59 percent in the current fiscal year, the report elaborated.
According to the report, global economic uncertainty remained elevated in August 2025, while uncertainties regarding US economic and trade policies have eased from the peaks seen in April 2025 as the US engaged in trade agreements with various nations.
Point of View
It’s heartening to witness India's services exports thriving amidst global challenges. The trade surplus reaching $80 billion signifies a resilient economy, but we must remain vigilant about potential obstacles. Continuous monitoring of external factors will be crucial to sustaining this momentum.
NationPress
10/10/2025
Frequently Asked Questions
What is the current trade surplus of India?
India's current trade surplus stands at $80 billion for the first five months of FY26.
What growth rate did India's services exports achieve?
India's services exports grew by 8.7% year-on-year (YoY) in the first five months of FY26.
What are the projections for India's services exports in FY26?
The report projects an 8.2% growth in services exports for FY26.
How much did foreign direct investment increase?
Gross foreign direct investment inflows rose by 33% year-on-year in the first four months of FY26.
Which sector is driving growth in electronic goods?
The telecom instruments sector is a significant contributor to the growth in electronic goods, with a 59% increase.
