Chennai: The Economic Survey is optimistic about the strength of India’s external sector, with deepening global integration driven by robust exports, resilient services trade, and expanding trade networks. Services exports lead, while non-petroleum merchandise exports hit record levels, supported by healthy foreign exchange reserves and a moderate external debt profile. Despite a clear government intent and proven economic management, FDI inflows remain below their potential, especially for infrastructure needs. India’s foreign exchange reserves increased to $701.4 billion and have helped steady India’s external position despite shifts in global risk sentiment and episodes of portfolio outflows. “As growth-driven import demand increases with greater global integration, India’s external sustainability depends on the quality and stability of its financing.