India’s Trade Deficit Narrows on the Back of Surging Service Exports

India’s trade deficit saw a welcome reduction of 9.4% in the first quarter of this year, thanks to a robust 11% growth in services exports. This positive development brings the current trade deficit down to $20.3 billion, offering a promising outlook for the Indian economy.

Service Sector Drives Trade Improvement

The burgeoning service sector, a key strength of the Indian economy, played a pivotal role in this improved trade performance. The impressive 11% growth in services exports significantly contributed to narrowing the gap between imports and exports.

On Track for Record-Breaking Exports

According to the Commerce Secretary, the current export growth trajectory positions India to potentially exceed last year’s record-breaking export figures of $825 billion. This positive momentum suggests continued strength and resilience in the Indian economy.