India’s services exports have witnessed a remarkable growth of 9.8%, reaching $180 billion in FYTD 2025. According to recent data, This increase shows the rapid performance of the Indian services sector. This plays a crucial role in the nation’s economic landscape.
The overall exports include merchandise and services. It experienced a Y-O-Y increase of 4.86% in the first half of FY25. Hence, reaching $393.22 billion for the April-September period, according to data released by the Commerce Ministry.
However, this growth comes alongside a significant surge in the trade deficit, which expanded by 24.11% during the same period, climbing from $44.18 billion to $54.83 billion. Overall imports for the first half of FY25 rose to $448.05 billion, up from $419.18 billion, marking an increase of 6.89%.
India’s Service Export Sector Performance Highlights
Merchandise exports showed a slight increase, rising from $211.08 billion to $213.22 billion, while service exports grew from $163.92 billion to $180 billion. Engineering goods remained the leading export category, valued at $56.24 billion, followed by petroleum products at $36.56 billion. Noteworthy increases were also seen in electronic goods exports, which reached $15.64 billion, and drugs and pharmaceuticals, totaling $14.43 billion. Organic and inorganic chemicals exports stood at $14.11 billion.
Commerce Secretary Sunil Barthwal emphasized the steady growth in exports and highlighted the success of niche products, such as ayush and apples, in global markets. India’s merchandise export growth of 5.3% notably outpaced the global average of just 0.1%.
Gold Imports Surge Amid Festival Demand
India has witnessed a dramatic increase in gold imports. The values doubling from $4.94 billion in the previous year to $10.06 billion this year. This impulsive surge is largely attributed to seasonal demand surrounding Indian festivals. This traditionally shows a spike in gold purchases.
The increased demand for gold during festivals like Diwali has led to a notable rise in consumer spending. Jewelers and retailers are reporting higher sales as consumers prepare for celebrations, which often involve purchasing gold jewelry and ornaments.
