RBI Data: India's Services Imports Fell 1.6% YoY in March; Exports Climbed 7.2%
India's services imports decline 1.6% in March; exports rise 7.2% year-on-year.
India’s international services imports slipped into negative growth in March 2026, according to data released by the Reserve Bank of India (RBI), indicating a mild contraction in outbound spending on global services. Services imports stood at $17,210 million, registering a 1.6% year-on-year decline, marking a reversal from the strong expansion seen in the previous month.
The March figures follow a sharp rise in February 2026, when services imports had surged 16.2% year-on-year to $16,865 million, highlighting significant month-to-month volatility in external services flows. During the same period, services exports had also remained strong, reflecting steady global demand for India’s IT, business, and financial services sectors.
In March 2026, services exports rose 7.2% year-on-year to $38,208 million, showing continued resilience despite fluctuations in imports. Monthly trends indicate stable export performance, with January exports recorded at $38,165 million, suggesting consistent overseas demand for Indian services across the quarter.
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Broader trade data also showed mixed trends, with India’s merchandise trade deficit narrowing to $20.76 billion in March 2026, compared to $21.69 billion in the same month last year. Imports declined 6% to $59.9 billion, while exports fell 7.5% to $38.92 billion, reflecting weaker global trade conditions and reduced demand.
Economists attributed the overall slowdown in trade activity to global uncertainties, including geopolitical tensions in the Middle East, rising shipping insurance costs, and disruptions to key maritime routes such as the Strait of Hormuz. Despite these challenges, industry bodies continue to project long-term strength in India’s services sector, with expectations that services exports may eventually surpass merchandise exports in the coming years.
