India's services exports continued on their successful growth path in the last four years. During the period 2004‑05 to 2009‑10, the CAGR of services exports was 16.7%, marginally higher than the 16.4% for merchandise exports during the same period.8 Services exports reached US$106 billion in 2008‑09 with a growth of 17.3% over the previous year. As a result of the global recession, services exports declined to US$95.8 billion in 2009‑10 with a negative growth of (‑) 9.6% but recovered in 2010‑11 (April‑September) with a growth rate of 27.4%. The major categories of services exports in 2009‑10 included software services, travel, business services and transportation.
Imports of services increased from US$27.8 billion in 2004‑05 to US$60 billion in 2009‑10. While services imports in 2008‑09 grew at a rate of 1.1%, the growth rate increased sharply to 15.3% in 2009‑10 and to 46.9% in 2010‑11 (April‑September).9 The major categories of services imports in 2009‑10 included business services, transportation, travel and financial services.
During the period under review, the balance of trade in services has remained positive (see Table 4). However, this surplus has not been sufficient to bridge India's trade deficit.