India’s Services Sector Stays Strong With Growth In June: Credit Expansion Shows Signs Of Cooling

India’s international trade in services showed notable momentum in June 2025, with both exports and imports registering year-on-year growth, according to data released by the Reserve Bank of India (RBI).

The value of services exports (receipts) stood at USD 32.11 billion in June 2025, reflecting a 12.0 per cent growth compared to the same month last year. Meanwhile, services’ imports (payments) reached USD 15.90 billion, marking a 5.0 per cent rise over June 2024.

India’s Services Exports Maintain Momentum

The June numbers indicate continued strength in India’s services sector, particularly in IT, business, and financial services, which form the backbone of the country’s export earnings. The export growth in June also follows a consistent trend observed over previous months. In April and May 2025, services exports were recorded at USD 32.84 billion and USD 32.45 billion, registering growth rates of 8.8 per cent and 9.6 per cent, respectively.

On the imports side, the pace of increase accelerated slightly in June. While imports fell by 1.1 per cent year-on-year in May 2025, they rose by 5.0 per cent in June, indicating a possible rebound in demand for foreign professional and technical services.

The figures are based on revised data drawn from India’s balance of payments statistics and are part of the RBI’s monthly release on trade in services.

In separate news, the Reserve Bank of India (RBI) has released sectoral data on the deployment of bank credit, showing a year-on-year (y-o-y) growth of 10.2 per cent in non-food credit as of June 27, 2025. This marks a decline from the 13.8 per cent growth recorded during the same fortnight a year earlier.

Credit Growth Slows Across Sectors

The data, collected from 41 select scheduled commercial banks that account for around 95 per cent of total non-food credit, indicates a broad-based moderation in credit expansion across key sectors of the economy.

Credit to the agriculture and allied activities sector grew by 6.8 per cent in June 2025, a sharp slowdown compared to 17.4 per cent growth in the same period last year. Similarly, credit to the industrial sector rose by 5.5 per cent, down from 7.7 per cent the previous year. However, within the industrial segment, loans to micro, small, and medium enterprises (MSMEs) maintained steady growth, and credit to sub-sectors such as engineering, construction, and textiles showed accelerated increases.

The services sector saw credit growth moderate to 9.6 per cent from 15.1 per cent last year. This decline was primarily driven by slower credit expansion to non-banking financial companies (NBFCs), although segments like computer software and professional services continued to post robust growth.

Personal loans grew by 14.7 per cent year-on-year, down from 16.6 per cent in June 2024. The slowdown was largely due to weaker growth in vehicle loans, credit card dues, and other personal lending.

(Inputs from ANI)

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