On the trade front, India’s services exports are estimated to have hit a record $325 billion in 2022-23, reflecting a growth of almost 28% over the previous year. The strong uptick in such intangible trade and the resultant surplus vis-à-vis imports of services have significantly plugged the hole in India’s current account deficit caused by a much sharper 40% widening of the goods trade deficit, which is reckoned to have hit $267 billion during the year. Growth in services exports during March had slipped to around 3% from 29% in February. However, as per the April PMI print, along with a surge in fresh demand and output for domestic services, outbound deals also increased at the highest pace in three months. That offers some comfort amid a strengthening global slowdown in major markets for India’s IT-dominated services exports. Yet, the flurry of crises in U.S. and European financial institutions, a key clientele for India’s tech majors, for instance, remains a worry. That services exports growth could moderate going forward is corroborated by the lower earnings guidance provided by IT companies as well as their extended dithering over on-boarding young recruits. The latter is part of an uncomfortable trend captured within the PMI reading — despite April’s boom, job creation has remained negligible and input costs have resurged. Neither augurs well for sustaining domestic demand, which has already taken a hit from high inflation.