New Delhi – India’s exports of goods and services surged to a historic high of $820 billion in the financial year 2024-25, marking a nearly 6% growth over the previous year’s $778 billion despite the turbulence in international markets. The milestone reflects India’s growing strength as a resilient and trusted trade partner amid a challenging global economic environment.
The data, released by the Commerce Ministry, was discussed during a high-level meeting led by Commerce and Industry Minister Piyush Goyal. The session, which included Export Promotion Councils and industry stakeholders, provided a platform to analyze the current trade landscape and chart the way forward.
Goyal praised Indian exporters for achieving a record-breaking performance, noting their efforts in the face of severe headwinds, such as the Red Sea shipping disruptions, the Israel-Hamas conflict’s regional spillover, the ongoing Russia-Ukraine war, and sluggish growth in developed markets like Europe and Japan.
Despite these challenges, Indian exporters expanded their global footprint, particularly in key markets like the US, Middle East, and Southeast Asia, leveraging India’s improved trade infrastructure, diversified product portfolio, and strengthened trade diplomacy.
Export Growth Amid Global Uncertainty
The steady rise in exports is indicative of a broader structural transformation in India’s trade orientation. Backed by policy reforms, streamlined logistics, and targeted export incentives, India has been able to diversify both its export markets and product basket.
Sectors such as pharmaceuticals, engineering goods, IT services, electronic items, and chemicals saw robust growth. The service sector alone contributed a significant chunk to the overall figure, with IT and business services leading the charge, especially in North America and Europe.
Industry experts pointed out that electronic exports and solar energy components were among the fastest-growing segments, driven by global demand for clean energy and digitization. At the same time, agri exports and marine products showed resilience, catering to markets in Asia and the Gulf.
Bilateral Trade Agreement Talks with the US
During the meeting, Goyal also informed the attendees of progress in negotiations with the United States for a comprehensive Bilateral Trade Agreement (BTA). The groundwork, initiated by Prime Minister Narendra Modi during his February 2025 meeting with President Trump, has since evolved into a multi-sectoral dialogue aimed at enhancing cooperation across industries.
The proposed BTA is expected to unlock new trade corridors, particularly in sectors like defense manufacturing, pharmaceuticals, semiconductors, AI, and agri-tech, which are high on the bilateral agenda.
Goyal clarified that while the talks are progressing steadily, the government is prioritizing national interest and avoiding undue haste to ensure a balanced outcome that benefits Indian industries and safeguards sensitive sectors.
India’s Strategic Positioning in Global Supply Chains
As global supply chains undergo realignment, India is positioning itself as a viable alternative to traditional manufacturing hubs, especially in the wake of geopolitical tensions and protectionist trends in parts of the West and East Asia.
Goyal emphasized that India’s reliability, stable policy framework, and business-friendly ecosystem are attracting global investments in manufacturing. This transition is expected to generate employment and increase local production capacity, especially in states aligned with industrial policy reforms.
He also acknowledged the differing tariff approaches by other countries, suggesting that India’s approach will be strategic and reciprocal. He noted that India’s reputation as a dependable supplier is a key advantage in retaining and expanding market share across continents.
Exporters Call for Government Support Amid New Challenges
Export Promotion Councils, representing sectors from textiles to gems and jewellery, engineering, IT, leather, food processing, and others, voiced their views during the session. Many flagged rising freight costs, inflation in input prices, and persistent disruptions in global shipping routes, particularly through the Red Sea.
They requested the government to intensify financial support schemes, facilitate access to international trade finance, and enhance market intelligence tools to help smaller exporters navigate geopolitical uncertainty and shifting regulations.
Exporters also urged the Centre to fast-track pending Free Trade Agreements (FTAs) with regions like the EU, UK, and Canada, which could offer India preferential access to large and premium markets.
Government’s Commitment to Export-Friendly Policies
Minister Goyal assured the industry that the government is working actively to provide a conducive trade environment and that it remains open to feedback from stakeholders. He reaffirmed the ministry’s focus on digital trade facilitation, ease of doing business, and infrastructure upgrades at ports and trade corridors.
The minister reiterated that India is exploring new trade partnerships in Latin America, Africa, and Central Asia, diversifying its dependency away from volatile regions. The government is also pushing for greater export orientation in MSMEs and supporting tech-led export strategies.
India’s Trade Performance in Perspective
India’s record exports come at a time when many emerging economies are witnessing stagnation or even contraction in overseas shipments due to weak demand and high interest rates in major import destinations. India’s ability to post a 6% year-on-year rise reflects the effectiveness of proactive trade policy, targeted sectoral support, and the private sector’s agility.
According to officials from the Commerce Ministry, digitization of customs, streamlined GST refund processes, and PLI (Production Linked Incentive) schemes have played an important role in boosting confidence among exporters.
Further, Indian companies have been moving up the value chain, offering finished goods and services instead of raw materials or low-margin products, which has helped improve per-unit realization.
Outlook for 2025-26: Navigating Through Volatility
Looking ahead, the outlook for FY 2025-26 remains cautiously optimistic. Trade experts believe that with the right policy mix and trade diplomacy, India could aim for an export target of $870-900 billion, provided global economic conditions stabilize.
Much will depend on the outcome of key trade negotiations, the resilience of global demand, and how effectively India taps emerging markets while deepening existing trade relationships.
The ongoing geopolitical developments, including US-China trade tensions, continued Middle East instability, and monetary policy shifts by central banks, will influence India’s trade trajectory. However, India’s recent performance has shown that it is well-equipped to deal with fluctuations and pivot quickly.
India’s export performance in 2024-25 signals more than just a statistical high. It underscores the country’s growing relevance in the global trade architecture, driven by policy clarity, manufacturing push, and trade diversification. While challenges remain, the trajectory suggests that India is no longer a peripheral player but a central force in shaping the future of international commerce. The government’s engagement with exporters and strategic partnerships like the US BTA reflect a maturing trade ecosystem that prioritizes long-term gains over short-term optics.
