India's exports soar to record USD 821 billion in FY 2025
New Delhi: India has achieved a historic milestone by recording exports worth USD 821 billion in the financial year 2024–2
This achievement reflects sustained momentum in India's external trade despite global uncertainties. Dynamic Foreign trade policy, trade facilitation measures, digitalisation, PLI and capacity building of MSMEs support India's exports growth trajectory.
Over the last four financial years, exports have consistently surged—from USD 500 billion in FY2020-21 to USD 641 billion in FY2021-22, USD 776 billion in FY2022-23, USD 778 billion in 2023-24 and now peaking at USD 821 billion in 2024-25. The compound annual growth rate (CAGR) of over 10% underscores India's strengthening position in global trade, driven by strategic policy measures, industry adaptability, and diversification across products and markets.
Major export items accelerating export trajectory
India's robust export performance has been powered by key sectors. Petroleum products, electronic goods, machinery, organic chemicals, and pharmaceuticals have shown strong year-on-year growth. In the services sector, IT and ITeS, financial services, and consultancy have been major contributors. Engineering goods remain the largest contributor to merchandise exports, while agricultural commodities like rice, spices, and marine products have seen consistent global demand. The export of mobile phones and electronic components, spurred by the Production Linked Incentive (PLI) schemes, has significantly added to the momentum, symbolizing India's transition to high-value-added exports.
Global headwinds and India's resilience in exports
The year 2024–25 posed several challenges to global trade—ranging from supply chain disruptions, inflationary pressures, and geopolitical tensions to the prolonged impact of interest rate hikes by major central banks. Yet, India demonstrated remarkable resilience.
The ability of Indian exporters to adapt to shifting global dynamics played a pivotal role. While global trade contracted marginally, India managed to increase its export share by navigating challenges through policy flexibility and leveraging Free Trade Agreements (FTAs) with promising economies.
This resilience is also due to India's expanding digital services footprint, which was less affected by logistics bottlenecks. Moreover, exporters focused on new markets in Latin America, Africa, and Southeast Asia, reducing overdependence on traditional markets like the US and EU. Enhanced port infrastructure, trade facilitation measures, and the implementation of the National Logistics Policy helped reduce transaction costs and boost competitiveness. The government's efforts to onboard MSMEs on e-commerce platforms also supported the export ecosystem during global uncertainty.
The resilience also stems from India's strategic focus on sustainability and green trade. As global buyers shift toward low-carbon supply chains, India's adoption of green hydrogen, renewable energy, and sustainable farming practices is making its products more attractive globally. These efforts are not only cushioning India from short-term global shocks but also positioning it for long-term export competitiveness.
Increase in India's Exports from 2014–15 to 2024–25
Over the past decade, India's export performance has improved substantially. In FY2014–15, total exports stood at around USD 468 billion, comprising USD 310 billion in merchandise exports and USD 158 billion in services. By FY2024–25, exports have surged to USD 821 billion, with merchandise exports touching USD 447 billion and services exports at USD 374 billion. This near-doubling of total exports over a decade reflects India's expanding industrial and digital base, improved infrastructure, and successful integration into global supply chains.
India's increase in share of global exports
India's share in global exports of goods and services has also improved over the years. From around 2.1% in 2014, it has now grown to approximately 2.5% in recent years. While India still trails major exporters like China and the US, the narrowing gap indicates growing global confidence in Indian products and services. Notably, India now ranks among the top five services exporters globally, with IT, consultancy, and digital solutions dominating. In goods, sectors like pharma, engineering, and electronics have contributed to this improved standing, aided by strong quality standards and competitive pricing.
India's Major Export Destinations
The United States remains India's largest export market, followed by the United Arab Emirates (UAE), China, Bangladesh, Singapore, the Netherlands, and the United Kingdom. The US alone accounts for over 17% of India's exports, particularly in IT services, pharmaceuticals, textiles, and jewelry. The UAE is a major partner for gems and jewelry, petroleum products, and food items. European nations, notably Germany, France, and the Netherlands, import engineering goods, chemicals, and automobiles. The ASEAN region is another important bloc, with increasing trade in electronics and agri-products.
India's Diversification of Export Destinations
India has made a conscious effort to diversify its export markets to reduce dependency on a few countries. Africa, Latin America, Central Asia, and Southeast Asia are becoming key growth regions. For example, India's exports to Brazil, South Africa, and Nigeria have seen impressive growth, particularly in pharmaceuticals, rice, and engineering goods. The India-MERCOSUR Preferential Trade Agreement has provided a platform for expansion in South America. Furthermore, targeted initiatives like the Focus Africa and Focus Latin America programs, along with digital trade promotion strategies, have enabled Indian exporters to tap into emerging demand pockets.
Government Support and Ease of Doing Exports
Government initiatives have played a critical role in boosting exports. The Foreign Trade Policy (FTP) 2023 emphasized sustainability, digitalization, and sector-specific incentives. Schemes like Remission of Duties and Taxes on Exported Products (RoDTEP), PLI, and Export Credit Guarantee Corporation (ECGC) support have made Indian products more competitive. The implementation of the Trade Infrastructure for Export Scheme (TIES) and the National Logistics Policy has improved connectivity and reduced logistics costs.
Further, digitization of customs processes through ICEGATE, single-window clearances, and e-Sanchit have streamlined export documentation. The Indian Trade Portal now offers real-time market intelligence to exporters. Training and capacity-building programs for MSMEs have also empowered small exporters to go global. Taken together, these efforts have enhanced ease of doing business and helped in realizing the USD 821 billion milestone.
India's Production Linked Incentive (PLI) Scheme has also given a big push to India's exports. PLI not only benefits the domestic economy but also has positive ripple effects on the global stage, enhancing international trade, investment, and innovation. By fostering the growth of key sectors such as electronics, pharmaceuticals, and renewable energy, the PLI scheme contributes to the global supply chains, creating more efficient, competitive, and diversified markets.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
10 hours ago
- Observer
UK and India discuss cooperation amidst Lammy's visit
NEW DELHI: Britain and India on Saturday discussed expanding their "counter-terrorism" collaboration following recent fighting between India and Pakistan, Britain's foreign minister said after meeting Indian Prime Minister Narendra Modi. British foreign minister David Lammy is the highest-profile Western official to have visited both New Delhi and Islamabad since the South Asian neighbours agreed to a ceasefire last month after their worst fighting in nearly three decades. The latest tensions began in April after the killing of 26 men in Indian Kashmir that New Delhi blamed on "terrorists" backed by Pakistan, a charge Islamabad denied. India then attacked what it called "terrorist infrastructure" in Pakistan, leading to escalation from both sides until a May 10 ceasefire. "We want the situation to be maintained, but of course we recognise fragility, particularly in the backdrop of terrorism, terrorism designed to destabilise India," Lammy said in an interview at the residence of the British High Commissioner in New Delhi. "We are keen to continue to work with our Indian partners on counter-terrorism measures." He said he discussed the next steps with both Modi and Indian Foreign Minister S Jaishankar, but gave no specifics. Last year, India and Britain discussed combating the financing of terrorism, cooperation between law enforcement and judicial bodies; and information sharing. Lammy said he also discussed boosting trade between the world's fifth and sixth largest economies. The countries concluded talks for a free trade deal early last month. "I know that Prime Minister Keir Starmer is very much looking forward to coming to India very soon to sign the free trade agreement," Lammy said. "There is so much that our two nations can continue to do together." Meanwhile, Canadian Prime Minister Mark Carney invited his Indian counterpart Narendra Modi to the upcoming Group of Seven summit in a phone call, as the two sides look to mend ties after relations soured in the past two years. The leaders agreed to remain in contact and looked forward to meeting at the G7 summit later this month, a readout from Carney's office said. India is not a G7 member but can be invited as a guest to its annual gathering, which will be held this year in Kananaskis in the Canadian province of Alberta, from June 15 to 17. "Glad to receive a call from Prime Minister (Carney)... thanked him for the invitation to the G7 Summit," Modi said in a post on X. Modi also stated in his post on Friday that India and Canada would work together "with renewed vigour, guided by mutual respect and shared interests." Bilateral ties deteriorated after Canada accused India of involvement in a murder and of attempting to interfere in two recent elections. Canada expelled several top Indian diplomats and consular officials in October 2024 after linking them to the murder and alleged a broader effort to target Indian dissidents in Canada. New Delhi has denied the allegations and expelled the same number of Canadian diplomats in response. India is Canada's 10th largest trading partner and Canada is the biggest exporter of pulses, including lentils, to India. Carney, who is trying to diversify trade away from the United States, said it made sense for the G7 to invite India, since it had the fifth-largest economy in the world and was at the heart of a number of supply chains. "In addition, bilaterally, we have now agreed, importantly, to continued law enforcement dialogue, so there's been some progress on that, that recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context," he told reporters in Ottawa. — Reuters
Muscat Daily
4 days ago
- Muscat Daily
Good news expected soon on India-Oman FTA: Minister
Muscat – India and Oman are close to finalising a Free Trade Agreement (FTA), with some 'good news' expected very soon regarding the signing of the deal, according to India's Minister of Commerce and Industry, Piyush Goyal. As reported by several Indian media outlets on Monday, Goyal stated that negotiations between India and Oman on the proposed free trade agreement are progressing towards a conclusion. The talks gained renewed momentum following Goyal's visit to Muscat in January this year. The negotiations for the agreement, officially known as the Comprehensive Economic Partnership Agreement (CEPA), formally commenced in November 2023. 'I think you will see some good news very soon on the Oman FTA,' Goyal told reporters during his official visit to France, when asked whether the agreement could be concluded this year, according to PTI. Goyal was in France to hold discussions with French leaders and businesses aimed at enhancing trade and investment ties. He was also scheduled to attend a mini-ministerial meeting of the World Trade Organization (WTO) on Tuesday. Oman is India's third-largest export destination among the GCC countries. India already has a similar agreement in place with another GCC member, the United Arab Emirates, which came into effect in May 2022. India's key imports from Oman include petroleum products and urea, which together account for over 70% of total imports. Other significant imports from Oman comprise polymers of propylene and ethylene, petcoke, gypsum, chemicals, and iron and steel. Speaking about such FTAs, Goyal remarked that these agreements not only promote trade in goods and services, but also strengthen supply chains and instill confidence among businesses on both sides through stable policies and predictability, according to the PTI report. 'So, in a way, it's a big message when you conclude an FTA,' he added.
Observer
6 days ago
- Observer
Oman posts RO 540m surplus on oil gains
MUSCAT, JUNE 1 Oman posted a fiscal surplus of RO 540 million at the close of 2024, outperforming initial expectations and reversing a projected deficit of RO 640 million. The stronger-than-anticipated outcome was fuelled by robust oil revenues and disciplined expenditure, reinforcing the Sultanate's progress towards fiscal sustainability under Oman Vision 2040. Citing the audited financial performance of the State General Budget for 2024, the Ministry of Finance noted that total state revenues reached RO 12.78 billion, representing a 16 per cent increase over the budgeted RO 11.01 billion. The uptick was largely attributed to favourable oil market dynamics. Oman's average oil price stood at USD 82 per barrel—well above the assumed USD 60—adding significant upside despite a decline in production volumes. Daily output averaged 997,000 barrels, compared to the budgeted 1.031 million barrels per day, reflecting Oman's continued adherence to voluntary OPEC+ cuts. Oil revenues rose by 26 per cent year-on-year to RO 7.45 billion, while gas revenues climbed to RO 1.82 billion, marking a 16 per cent gain from budget estimates. Non-oil revenues remained broadly stable at RO 3.51 billion, marginally below expectations. On the spending side, total public expenditure reached RO 12.24 billion, exceeding the original allocation of RO 11.65 billion by five per cent. The rise in expenditure was driven primarily by a surge in development spending, which grew by 31 per cent to RO 1.5 billion. Contributions and other payments increased 14 per cent to RO 2.2 billion, while current expenditure was maintained within target, declining slightly to RO 8.53 billion. The Ministry of Finance stated that the increase in development spending reflects the government's ongoing efforts to support infrastructure expansion, social protection, and economic diversification. Additional spending was directed towards accelerating project delivery, enhancing public services, and stimulating domestic growth—all core objectives under Oman Vision 2040. In parallel with its revenue performance, Oman made further progress on debt reduction. More than RO 660 million in public debt repayments were made during the year, bringing total outstanding debt down to approximately RO 14.6 billion. Additionally, over RO 1.6 billion in private sector obligations were fully settled through the automated financial cycle system, helping improve liquidity and bolster confidence among contractors and service providers. The Ministry affirmed its commitment to responsible fiscal management and stated that the 2024 performance demonstrates the effectiveness of its macro-fiscal strategy. The combination of higher revenues, contained spending, and debt reduction enhances Oman's credit outlook and positions the economy for greater resilience in the years ahead. As oil markets stabilise and domestic reforms advance, Oman's ability to generate fiscal space while investing in development priorities signals growing alignment with its long-term transformation goals. The 2024 budget execution stands as a key milestone in the country's journey towards balanced growth and economic diversification.
