According to the Reserve Bank of India's latest update, India's services import sector has experienced significant acceleration in the current fiscal year. In July 2026, services imports spiked by 19.1% year-on-year to US$ 20.61 billion, demonstrating a sharp pick-up in payments for service imports. This represents a notable increase from the 11.90% growth rate recorded in April 2026, indicating an intensifying trend in import activity. The rise was faster than the growth in services exports during July, creating an imbalance in the services trade sector.
Services exports also showed positive momentum during the same period, though at a more moderate pace. As reported by the RBI, services exports stood at US$ 38.25 billion in July 2026, up 13.4% year-on-year. This compares to a 3.30% growth rate recorded in April 2026, suggesting a gradual improvement in export performance. The export growth rate remains lower than the import growth rate, indicating a trade deficit in the services sector. On a month-on-month basis, services exports increased by about 5.2% in July from June, while imports rose by about 11.5%.
The data reveals a concerning trend in India's services trade balance, with imports significantly outpacing exports. According to the RBI's analysis, the 19.1% import growth rate substantially exceeds the 13.4% export growth rate, creating an imbalance in the services trade sector. However, India recorded a services trade surplus of about US$ 17.65 billion during July 2026, despite the import-export differential. This surplus was driven by the higher absolute value of exports compared to imports, though the trend suggests increased demand for foreign services in India.
Based on the RBI's monthly data, India's services exports totalled US$ 145 billion during April-July 2026, while imports stood at about US$ 75.14 billion. The April-July figures are provisional and have been revised based on balance of payments statistics. Services exports showed consistent growth throughout the quarter, standing at US$ 37.02 billion in April, US$ 33.36 billion in May, and US$ 36.37 billion in June 2026. Imports also demonstrated steady growth, reaching US$ 18.42 billion in April, US$ 17.64 billion in May, and US$ 18.48 billion in June 2026.
