Faster services imports threaten to erode cushion against India’s goods trade deficit: Report
Oct 19, 2026
New Delhi: India's services trade surplus, which plays a crucial role in offsetting the country's merchandise trade deficit, is showing signs of pressure as services imports grow faster than exports, according to an ICICI Bank research report.
The emerging concern is that faster growth in services imports could reduce the net foreign exchange earnings generated by India's services sector, weakening an important cushion against the country's large merchandise trade deficit.
According to the bank's research report, net services exports declined 10 per cent year-on-year to USD 16.9 billion in September 2026.
The report stated that "net services exports saw a much sharper decline of 10% YoY to USD 16.9bn."
The contraction came as gross services exports fell 0.9 per cent year-on-year to around USD 36 billion, while services imports increased 8.9 per cent to approximately USD 19 billion.
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