India posts 5.5% export growth in FY25; services sector drives record $821 billion despite trade deficit rise.
India reported record-high exports worth $820.93 billion in FY2024–25, up from $778.13 billion in FY24, marking a 5.5% annual growth. The surge was driven by robust services exports, even as merchandise shipments remained largely stagnant at $437.42 billion. In contrast, overall imports rose to $915.19 billion from $856.52 billion, resulting in a widened trade deficit of $94.26 billion—over 20% higher than the previous year.
Commerce Secretary Sunil Barthwal announced that the services sector was the key contributor, with exports rising 12.45% to $383.51 billion. Services also helped cushion the impact of a marginal 0.67% growth in merchandise exports during March 2025. Major export drivers included electronics, engineering goods, pharma, ready-made garments, and agri-commodities.
The government remains optimistic about further trade growth through early harvest agreements with the US and EU. Barthwal highlighted ongoing discussions for a bilateral trade agreement with the US, expected by September-October 2025. Officials said these pacts could boost India’s position as a global supply chain alternative amid escalating US-China tariff tensions, providing fresh export opportunities and economic resilience.
Source: Hindustan Times
