India’s services sector continues to drive the nation’s economic resilience, setting new records in exports and helping offset trade deficits. The latest data for FY 2024–25 reveals robust growth in IT, telecom, and remittances, firmly positioning services as the backbone of India’s external sector performance.

Record-Breaking Services Exports

India’s services exports reached an all-time high of $387.5 billion in FY 2024–25, marking a 13.6% year-on-year growth. This increase was fueled predominantly by the strength of IT and IT-enabled services (ITES), a sector that continues to scale globally despite geopolitical and macroeconomic uncertainties.

March 2025 Snapshot:

• Monthly services exports: $35.6 billion
• Year-on-year growth for March: 18.6%

These figures reflect consistent monthly performance and high-value transactions across digital services, software, business outsourcing, and telecom solutions.

India’s Total Exports at $824.9 Billion

While services took the lead, overall export performance also improved. In FY 2024–25:

• Total exports (goods + services): $824.9 billion
• Growth compared to FY 2023–24: 6% (up from $778.1 billion)

This demonstrates how services are helping stabilize the export landscape, even when merchandise exports may face global headwinds.

Current Account and Invisibles: A Strong Cushion

India’s current account performance has benefitted immensely from net invisible inflows. In the quarter ending December 2024:

• Net invisibles: $67.7 billion
• Trade deficit coverage: 84%
• Total invisible receipts (9M FY25): $151.8 billion
• Total payments: $81.1 billion
• Net inflow (9M FY25): $190 billion

Sectoral Leaders: IT, Telecom, and Remittances

Key Sector Contributions:

• Telecom and IT Services (Q3 FY25): $48.3 billion
  • Share in invisible receipts: 32%

Private Transfers:

• Inward remittances: $63 billion
  • Growth: 13% YoY

These figures highlight the increasing contribution of overseas Indians and the global competitiveness of India’s digital services industry.

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India’s External Sector: FY 2024–25 Key Data Summary

Indicator	Value (USD Billion)	YoY Growth / Notes
Services Exports (Annual)	387.5	13.6% growth; record high
Services Exports (March 2025)	35.6	18.6% YoY growth
Total Exports (Goods + Services)	824.9	6% growth from $778.1 billion
Net Invisible Receipts (Q3 FY25)	67.7	Covered 84% of trade deficit
Total Invisible Receipts (9M FY25)	151.8
Invisible Payments (9M FY25)	81.1
Net Inflow from Invisibles (9M FY25)	190.0	Strong current account support
Telecom & IT Sector Receipts (Q3 FY25)	48.3	32% of invisible earnings
Private Transfers (Inward Remittances)	63.0	13% increase YoY

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Conclusion

India’s services sector has emerged as a stabilizing force in the economy, delivering strong exports, offsetting trade imbalances, and attracting consistent inflows through remittances and digital services. As global demand for IT and telecom solutions continues to expand, India’s position as a services powerhouse appears increasingly secure. These trends not only reflect resilience but also underscore the country’s growing strategic importance in the global knowledge economy.