India’s services exports continue to anchor the country’s external sector, offsetting weakness in merchandise shipments, according to the Economic Survey.
The Survey noted that while global trade uncertainties, slowing demand and supply-chain disruptions have weighed on goods exports, services exports — led by IT services, business process management, professional services, travel and transportation — have remained resilient and continued to post steady growth.
Strong demand from advanced economies, India’s expanding digital capabilities and its skilled workforce have helped services exports maintain momentum, providing stability to the overall export performance. The Survey highlighted that services now account for a growing share of India’s total exports and play a critical role in supporting foreign exchange earnings and the current account.
However, the Survey cautioned that sustained weakness in merchandise exports could pose challenges if global growth remains uneven. It stressed the need to boost manufacturing competitiveness, diversify export markets and strengthen integration into global value chains, while continuing to leverage India’s comparative advantage in services.