<h1>India's Trade Deficit Shrinks Amid Global Challenges; Services Exports Boost Economy with Rising IT and Pharma Exports.</h1> India's external sector demonstrated resilience amid geopolitical challenges, with a significant reduction in the trade deficit from USD 121.6 billion in FY23 to USD 78.1 billion in FY24. The country emerged as the seventh-largest global services exporter, with notable growth in software and IT services. Merchandise trade saw a narrowed deficit, and exports of electronics and pharmaceuticals increased. The current account deficit improved, supported by rising services exports and remittances. Net capital flows rose to USD 86.3 billion, driven by foreign portfolio investments. The rupee remained stable, and external debt to GDP ratio declined, reflecting India's robust economic position.