India's Services Export Faces Consecutive Decline

India's services exports dropped for the second month in February to USD 31.62 billion, while imports fell to USD 14.5 billion, according to the Reserve Bank of India. Annually, February exports rose by 11.6%, with a 4.8% decrease in imports. Net foreign liabilities of India have increased.

The Reserve Bank of India released data showing a second consecutive monthly decline in India's services exports, down to USD 31.62 billion in February. During the same period, imports contracted to USD 14.5 billion. In January, services exports had already slipped to USD 34.72 billion, following USD 36.96 billion in December 2024.

On a year-on-year basis, services exports saw an 11.6% rise in February compared to the previous year, while imports decreased by 4.8%. The RBI further reported an increase in net claims of non-residents on India, which rose by USD 11 billion, positioning at USD 364.5 billion by the end of December 2024.

Indian residents' foreign assets decreased by USD 40.1 billion, and non-residents' claims in India declined by USD 29.1 billion, escalating India's net foreign liabilities. The drop in foreign liabilities is attributed to decreased direct and portfolio investments, despite increases in trade credit, loans, and currency deposits, as per the central bank's announcement.

(With inputs from agencies.)