India's services exports in the month of May increased by 8.8 percent to $13.9 billion. However, imports of services rose in double-digit at 15 percent to $8.03 billion during the month. Indian services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, represent around 60% share in the country’s GDP.
On cumulative terms, services exports during April-May stood at $27.5 billion, whereas cumulative imports were recorded at $16.09 billion. For the financial year 14, outbound shipments touched $312.35 billion, a 3.98% growth over the previous fiscal year, but below the set export target at $325 billion.
However, India’s overall imports during the FY14 declined by 8.11% to $450.95 billion as against $490.74 billion reported in the same period of previous fiscal year. Contraction in domestic import during FY14 was mainly driven by weak domestic demand and lower gold imports. With the remarkable double digit contraction witnessing in imports and growing country’s overall exports, India’s trade deficit during the financial year 2014 contracted significantly to $138.59 billion as compared to $190.34 billion in the FY13.