India’s latest trade figures reflect the robust performance of its services sector, which continues to act as a buffer against the challenges of muted global demand, geopolitical tensions, and high interest rates, the Federation of Indian Export Organisations (FIEO) said on Monday.

Despite global economic headwinds, India’s overall exports (merchandise and services combined) demonstrated resilience, registering a 2.8 per cent growth in May 2025.

Total exports reached $71.12 billion, up from $69.20 billion in May 2024.

“This uptick was primarily driven by continued strength in services exports, particularly in software, consultancy, and financial services,” said SC Ralhan, President, FIEO.

“Exporters are adapting well to a tough global environment. The ability to sustain export growth despite logistical disruptions, especially in the Middle East, is a testament to the sector’s agility and policy support,” said Ralhan.

Overall imports (goods + services) saw a marginal dip to $77.75 billion, compared to $78.55 billion in May 2024, suggesting stable domestic demand for essential inputs and services.

Ralhan pointed out that the decline in merchandise imports could also reflect growing success in import substitution and domestic capacity building, aligned with the government's push for self-reliance.

To sustain and accelerate export growth, the FIEO President emphasised the urgent need for continued support for MSMEs through the Interest Equalisation Scheme; Expedited Free Trade Agreement (FTA) negotiations to boost market access particularly BTA with US; simplification and digitisation of trade procedures to reduce transaction costs; and making e-commerce exports seamless by addressing various procedural issues.

Looking ahead, Ralhan urged the government to maintain a sharp focus on sector-specific issues, and capitalise on 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 stabilize in the second half of 2025, India is well-positioned to regain a strong export growth trajectory,” he noted.