India’s services exports shine amid global challenges: FIEO
New Delhi: The Federation of Indian Export Organisations (FIEO), the apex body of exporters, said India’s latest trade data reflects the strong performance of the country’s services sector, which continues to act as a buffer against the challenges of subdued global demand, geopolitical tensions and high interest rates.
Despite global economic headwinds, India’s overall exports, comprising goods and services, showed robust growth, registering a growth of 2.8 per cent in May 2025. Total exports rose to $71.12 billion from $69.20 billion in May 2024.
“This surge was led by continued strength in services exports, particularly in software, consulting and financial services,” said SC Ralhan, President, FIEO. “Exporters are adapting well to the difficult global environment. The ability to sustain export growth despite logistical disruptions, especially in the Middle East, is a testament to the policy support to the sector,” Ralhan said.
Total imports of goods and services witnessed a marginal decline from $78.55 billion in May 2024 to $77.75 billion in May 2025. This indicates stable domestic demand for essential inputs and services.
Ralhan informed that the decline in imports of goods reflects the increasing success in import substitution and domestic capacity building, which is aligned with the government’s self-reliance effort. To sustain and accelerate export growth, the FIEO President emphasized the urgent need for continued support for MSMEs through the Interest Equalization Scheme.
Also, he emphasized on accelerated free trade agreement negotiations especially for BTA with the US to promote market access, simplification and digitization of trade processes to reduce transaction costs and making e-commerce exports seamless by addressing various procedural issues.
Looking ahead, Ralhan urged the government to maintain focus on sector-specific issues and leverage India’s growing services strength by investing in digital infrastructure, talent development and targeted global promotion. “With appropriate policy interventions and global conditions expected to stabilise in the second half of 2025, India is well positioned to regain a strong export growth,” he said.
