Page 24 - Policy Economic Report - October 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

? Related Schemes: The government is also rolling out a separate ?7,300 crore production-linked
incentive scheme to boost the manufacturing of rare earth permanent magnets.

8. India’s exports remain steady- RBI

India’s current account deficit narrowed to 0.2% of GDP in Q1 FY 2025-26 from 0.9% a year
ago, supported by strong services exports and robust remittances of US$35.3 billion, keeping India the
world’s largest recipient of private remittances.

Amid global trade uncertainty, India’s merchandise exports rose 2.5% (April–August 2025) while imports
grew 2.1%. Services exports continued double-digit growth, and Q1 FY 2025-26 real exports and imports
of goods and services grew 6.3% and 10.9%, respectively.

During April-July 2025, Gross FDI inflows remained strong at US$ 37.7 billion, underscoring India’s
continued appeal as a preferred investment destination. The net inflows rise to US$10.8 billion, led by
Singapore, the US, Mauritius, UAE, and the Netherlands, which together contributed 76% of total FDI.

Figure 13: Major drivers of exports in 2025-26 (April-August) Relative contribution

Source- RBI Page | 23

October 2025