India's services export growth slowed sharply to 7.2% on year in September from 13.7% in August, breaking a three-month stretch of growth above 13%, according to data released by the Reserve Bank of India today. Services exports stood at $39.31 billion in September, compared with $35.47 billion in August and $38.25 billion in July.

Year-on-year growth in services exports had remained around 13% since June, when it stood at 13.3%. Growth was 13.4% in July and 13.7% in August before moderating in September.

Despite the slowdown in annual growth, services exports rose 10.8% sequentially in September, indicating that export receipts increased even as their pace of expansion from a year earlier weakened.

Services imports also recorded slower annual growth, rising 12.6% on year to $20.10 billion in September, compared with a 21.4% increase in August and 19.1% in July. On a sequential basis, services imports rose 6.1% from $18.93 billion in August.

India's services trade surplus widened to $19.21 billion in September from $16.54 billion in August and $17.65 billion in July, as export receipts increased faster than import payments during the month.

The RBI said the July–September figures were provisional and the year-on-year growth rates had been revised based on balance of payments statistics.