Service exports decline in June

Reflecting the slowdown in developed economies, India's service exports declined to $11.04 billion in June. Services exports stood at over $11.83 billion in May.

The total services exports during the first quarter stood at $33.33 billion, according to Reserve Bank of India (RBI). RBI did not provide comparative data for 2010-11. The decline in the services sector is in contrast to the growth in merchandise exports, which rose 46.45 per cent to $29.21 billion in June, compared with $19.94 billion in June 2010. The cumulative value of exports in April-June was $79.00 billion, up from $54.22 billion in April-June 2010.

Madan Sabnavis, chief economist with rating agency CARE, said the flat growth in the three-month period is a reflection of the long-drawn slowdown in developed markets, key markets for services exports. The information technology and the business process outsourcing sectors have a predominant share in India's services exports.

The downturn in business activity may hit services earnings this year.