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India's services exports decline for second month in February at $31.62 billion

29 Mar 2025 Evaluate

The Reserve Bank of India’s (RBI) release on ‘India's International Investment Position for end-December 2024’ has shown that the Indian services exports have declined for the second month in row to $31.62 billion in the month of February, while the imports have dropped to $14.5 billion. During the month of January, the service exports stood at $34.72 billion against $36.96 billion in December 2024, while imports stood at $16.7 billion in January. Meanwhile, on the annual basis, services exports rose by 11.6 per cent in February compared to the same month of the last year, while the imports have contracted by 4.8 per cent on year-on-year basis.

RBI has stated that the net claims of non-residents on India has increased by $11 billion during third quarter of fiscal year 2024-25 and stood at $364.5 billion in December 2024. It added that the net foreign liabilities of India have increased as the foreign assets of Indian residents have declined by $40.1 billion and the claims of non-residents' in India have also declined by $29.1 billion. RBI also added that the decline in Indian residents' foreign assets during October-December 2024 was mainly on account of the decrease of $70.1 billion in reserve assets.

The central bank has pointed out that the fall in India's foreign liabilities was due to the decline in inward direct and portfolio investments during the quarter. Meanwhile, the trade credit, loans and currency and deposits have recorded an increase during the same period.


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