NEW DELHI 12/10/2025 SANTOSH SETH
India’s strong export performance, spanning both goods and services, reflects the country’s growing competitiveness and resilience in the global market.
Significant growth in top-performing commodities such as electronics goods, other cereals, tea, dairy, and mica products, along with increased merchandise exports to key destination countries, highlights the effectiveness of India’s export initiatives and schemes.
Government policy interventions have boosted exporter confidence, supported innovation, improved ease of doing business, and expanded market opportunities.
With the strengthening of Indian business standards, export growth is poised to further accelerate economic growth, employment, and India’s dominant position in international trade.
The journey of Indian exports is a result of innovation combined with global integration. From the Silk Route to the post-liberalization boom, exports have diversified from spices and textiles to technology, pharmaceuticals, and engineering goods.
According to World Bank data, global exports are growing at 2.5 percent, while India’s exports are projected to grow at 7.1 percent (2024), outpacing global growth and signaling the country’s progress on the international stage.
The share of exports in Indian GDP is projected to increase from 19.8 percent in 2015 to 21.2 percent in 2024, underscoring the growing relevance of exports to the Indian economy (World Bank). India’s trade performance continued its growth trend in the first five months of FY 2025-26.
Recognizing this growth trajectory, the government has also set an export target of US$1 trillion in the current financial year 2025-26, of which 34.61 percent has been achieved in the first five months alone.
Driven by government reforms, digital transformation, and entrepreneurial spirit, the country’s export sector is at the cusp of new possibilities, capturing global attention and shaping the narrative of self-reliant India on the global stage.
Key factors behind merchandise export growth
India’s merchandise exports are on an upward trajectory in 2025. They registered a healthy growth of 2.31 percent in April-August 2025, with exports reaching US$183.74 billion compared to US$179.60 billion during April-August 2024.
However, 19 percent of merchandise exports in the five months were made in August 2025 alone, registering a growth of 6.65 percent from the previous year.
India’s non-petroleum and non-gems and jewellery exports increased to US$146.70 billion in April-August 2025, from US$136.13 billion a year earlier.
This represents a robust growth of 7.76 percent. This category highlights India’s export strength, driven by engineering goods, electronics, pharmaceuticals, chemicals, and others.
Commodities such as electronic goods, tea, mica and coal, textiles, etc., recorded impressive growth in April-August 2025 compared to the previous year.
Electronic goods
Electronic goods led the growth momentum, with exports reaching US$5.51 billion, a 40.63 percent increase in April-August 2025 compared to the same period last year.
Commodities also performed well in August 2025, with growth of 25.91 percent compared to the previous year. Over the past 10 years, electronic goods production has increased six-fold, and exports of electronic goods have increased eight-fold.
Driven by the Make in India and PLI schemes, Indian electronic goods exports are growing with major markets including the United States, the United Arab Emirates, China, the Netherlands, and the UK.
Smartphones remain a key growth driver. India is transforming from a net importer to a net exporter in this sector. Smartphone exports crossed ₹1 lakh crore in just five months of FY26, a 55 percent increase compared to the same period last fiscal year.
Other cereals
India’s exports of other cereals increased by 21.95 percent in April-August 2025 compared to April-August 2024. This includes rye, barley, oats, fonio, quinoa, etc. It excludes wheat, rice, maize, and millet. One reason behind the increase in global demand for other cereals is the growing awareness of nutritious and health-conscious food products.
With India’s rich agricultural heritage, these cereals enhance agricultural diversity, increase food security, and provide new export opportunities. Top export destinations are Nepal, Sri Lanka, the United Arab Emirates, Bangladesh, and Bhutan.
Meat, dairy, and poultry products
Meat, dairy, and poultry products grew by 20.29 percent in April-August 2025 compared to the previous year. A 17.69 percent increase was also recorded during August 2025 compared to August 2024.
Vietnam, the United Arab Emirates, Egypt, Malaysia, and Saudi Arabia are some of the importers of Indian meat, dairy, and poultry products.
Export growth has been catalyzed by various government initiatives. For example, the Agricultural Export Policy provides an institutional mechanism to advance market access and supports farmers in taking advantage of export opportunities.
The Agricultural and Processed Food Export Promotion Scheme (APEDA) assists businesses in developing export infrastructure, quality improvement, and market development.
Tea
Tea exports registered growth, rising 18.20 percent in April-August 2025 compared to the previous year. Tea exports also increased by 20.50 percent in August 2025 compared to August 2024, accelerating overall tea export growth.
India achieved a significant milestone in the global tea industry, surpassing Sri Lanka in 2024 to become the world’s second-largest tea exporter.
India’s Assam, Darjeeling, and Nilgiri teas are among the world’s finest. Black tea leads the export chart, accounting for 96 percent of shipments, while varieties such as green, herbal, masala, and lemon tea further enhance India’s global reputation.
India exports tea to several countries, with the United Arab Emirates, Iraq, the United States, the Russian Federation, and Iran emerging as top destinations.
Mica, coal, and other ores, processed minerals
Mica, coal and other ores, processed mineral exports increased by 16.60 percent in April-August 2025 compared to the previous year.
Commodities also experienced growing demand in August 2025, with a growth of 24.57 percent compared to the previous year. Some of the top countries to which India exports processed minerals and their by-products are China, the United States, the United Kingdom, Oman, and Bangladesh.
Other important commodities/areas
Engineering goods, India’s traditional export mainstay, also recorded steady gains, rising 5.86 percent to US$49.24 billion in April-August 2025 from US$46.52 billion in April-August 2024.
The United States remained the leading destination, along with the United Arab Emirates, Germany, the United Kingdom, and Saudi Arabia.
Major export items under the industrial machinery category include IC (internal combustion) engines and parts, industrial machinery for dairy, food processing, textiles, and industrial machinery such as boilers, parts, injection molding machinery, valves, and ATMs.
The Indian government has launched several schemes, such as Zero Duty Export Promotion Capital Goods (EPCG) and Market Access Initiative (MAI), to maintain strong engineering exports. These initiatives aim to encourage exporters and help increase revenue from international markets.
Drugs and pharmaceuticals exports increased from US$11.89 billion in April-August 2024 to US$12.76 billion in April-August 2025, a year-on-year increase of US$0.87 billion (7.30 percent).
India’s ability to supply affordable generic and specialty drugs sustained demand from advanced and emerging markets, with the United States, the United Kingdom, Brazil, France, and South Africa as top buyers. Government initiatives for quality control and export promotion in this sector that clearly contributed to growth include the Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024 and the National Medical Devices Policy, 2023.
India is the sixth-largest exporter of textiles and apparel globally, with a 4.1 percent share in calendar year 2024. Readymade garments, among all textiles, continue to contribute positively to the labor-intensive sector.
Its exports grew by 5.78 percent to US$6.77 billion in April-August 2025 compared to the previous year. Demand remained strong in traditional markets, led by the United States, the United Kingdom, the United Arab Emirates, Germany, the Netherlands, and Spain, reaffirming India’s strong presence in global apparel supply chains.
The sector’s focus on self-reliance by promoting domestic value addition, advancing sustainable practices, and strengthening India’s brand as a supplier of high-quality textiles is fueling the sector’s growth.
India’s Strategic Trade Relationships: Top Merchandise Export Destinations
India’s strategic trade relationships reflect its growing role in the global economy, with merchandise exports expanding steadily across various sectors. India’s merchandise exports to several countries increased in April-August 2025 compared to April-August 2024.
Hong Kong as a Gateway: India’s merchandise exports to Hong Kong amounted to US$6.07 billion in 2024-25. These exports highlight India’s diverse trade portfolio, ranging from luxury items like gems and jewellery to engineering and electronic goods.
Merchandise exports to Hong Kong increased by 26.19 percent to US$2.62 billion in April-August 2025. Hong Kong, long seen as the “gateway to China,” now has the potential to become the “gateway to India” amid growing India-China economic ties.
Re-export trade between India and China through Hong Kong in 2024 was HK$97.9 billion (US$12.59 billion). This reflects India’s growing role in global trade and the strength of its export sectors.
Trade with China, a neighbor in Asia: India’s merchandise exports to China have seen significant growth in recent years. It is projected to reach approximately US$14.25 billion in FY 2024-25, registering a robust year-on-year growth of 19.65 percent in April-August 2025.
Major commodities exported from India to China include petroleum products, engineering goods, electronic goods, organic and inorganic chemical products, and iron ore and marine products.
This reflects India’s growing industrial capabilities and its role as a supplier of raw materials and intermediates to China’s manufacturing sector.
India’s Exports to the United States: India’s merchandise exports to the United States stood at US$6.87 billion in August 2025. India’s major merchandise exports to the United States include electronic goods, engineering goods, drugs and pharmaceuticals, gems and jewellery, and textiles.
Consistent exports to the United States reflect India’s growing competitiveness on the global stage and its ability to deliver high-value products in a dynamic market.
This reflects India’s preparedness in the event of additional tariffs imposed by the United States on Indian imports. Exports to the United States declined from July 2025 to August 2025, while exports to other countries increased during the same period.
Focusing on diversification, India is improving product quality, aligning with global standards, strengthening supply chains, and tapping new markets.
Along with increasing exports, the country is diversifying its export destinations, boosting the global prospects of Indian products.
Trade with the European country Germany: India’s merchandise exports to Germany were approximately US$10.63 billion in 2024-25. Engineering goods constituted 40 percent of the major export items.
This includes electrical and electronic equipment, organic and inorganic chemicals, Indian textiles, and drugs and pharmaceuticals.
In April-August 2025, Indian merchandise exports to Germany grew by 11.73 percent compared to the previous year, indicating growing trade with the European country.
India’s merchandise exports to Germany are important as they deepen trade with Europe’s largest economy and a major hub for the EU market.
India’s Presence in East Asia, Korea: India is one of Korea’s top trading partners, with trade relations covering various sectors of the economy.
In FY 2024-25, engineering goods (over 40 percent of total exports to Korea), petroleum products, and organic and inorganic chemicals accounted for over 70 percent of exports to Korea.
In April-August 2025, merchandise exports to Korea increased by 9.69 percent compared to the previous year, reaching US$2.63 billion, reflecting Korean consumers’ confidence in Indian products.
These exports have been further supported by the India-Korea Comprehensive Economic Partnership Agreement (CEPA), which has reduced tariffs and improved market access for Indian businesses.
Services Exports: The New Engine of India’s Export Growth
The Economic Survey 2024-25 referred to the services sector as the ‘Old War Horse,’ reflecting its continued strength and role in driving the economy.
With an increase of 8.65 percent in April-August 2025 compared to the previous year, India’s services exports continued to demonstrate resilience and growth, strengthening the country’s position as a leading player in the global services economy.
Driven by strong performance in sectors such as information technology, business process management, financial services, tourism, and professional consultancy, the services sector remains a significant contributor to India’s foreign exchange earnings.
The services sector’s trade surplus in April-August 2025 was US$79.97 billion. Consequently, the services sector has contributed to a decline in the overall trade deficit, with the services sector also contributing to a trade surplus. The growth in India’s services exports in 2025 can be attributed to several key factors driving sustained growth:
Technology Sector: India’s technology sector accounted for 7.3 percent of total GDP in fiscal year 2024. By 2030, India’s digital economy is projected to contribute nearly a fifth of the country’s overall economy.
Technological advancements and the rapid adoption of digital solutions, including cloud computing, AI, and fintech, have expanded India’s global competitiveness in high-value digital services. Initiatives like Digital India, Make in India, and Startup India are also supporting this sector.
Demographic Divide: India has the world’s largest youth population. Nearly 65 percent of the country’s population is under the age of 35, strengthening its competitive advantage over other countries.
A young population represents a large workforce with the potential for improved productivity and increased consumer demand.
With the current demographic divide and the Indian government’s focus on skill development with programs like the Skill India program, the services sector continues to be fueled with a skilled workforce.
Liberalization of FDI norms: The Indian government consistently strives to attract more FDI by improving the business environment by removing regulatory barriers, streamlining processes, developing infrastructure, improving logistics, and enhancing the ease of doing business (EoDB).
One example is the announcement in the Union Budget 2025 to increase the FDI sectoral cap for the insurance sector from 74 percent to 100 percent. This increased limit is available to companies that invest their entire premiums in India.
Similarly, under the India-UK CETA, India has secured extensive commitments from the UK. The UK’s commitments in digitally delivered services will enable continued strong growth in IT and business services to expand its share of the UK’s approximately USD 200 billion in imports.
Studies of the sector’s growth are a result of the government’s continued efforts to negotiate trade deals with countries and develop policies for the service sector.
Government Initiatives to Boost India’s Export Competitiveness
India’s export promotion schemes are a comprehensive set of government initiatives designed to boost export performance by addressing infrastructure inefficiencies, reducing costs, improving quality control, and enhancing competitiveness.
These initiatives have resulted in a 12.5 percent reduction in the rejection rate of Indian exported products by importing countries in June 2025 compared to June 2024.
India is promoting foreign trade and exports through the Foreign Trade Policy 2023, which supports exemptions, ease of doing business, collaboration, and incentives for new markets.
It also provides exporters with the opportunity to close old pending authorizations and start afresh. The RoDTEP scheme reimburses exporters for embedded duties, taxes, and levies that are otherwise not refunded under any other existing scheme. It has reimbursed approximately ₹58,000 crore by March 2025.
Initiatives such as Districts as Export Hubs are empowering states and districts to become active players in trade. 734 districts with export potential have been identified, and District Export Action Plans (DEAPs) have been prepared for 590 districts.
SEZs are supporting trade and also boosting employment, investment, and exports worth ₹14.56 lakh crore in FY 2024-25, representing a growth of 7.37 percent over the previous year.
India is improving its trade and logistics through several key initiatives. The TIES (Trade Infrastructure for Exports Scheme) helps build export-focused infrastructure such as testing laboratories, warehouses, and cargo facilities.
The PM GatiShakti Yojana and the National Logistics Policy are making transportation faster and greener through multi-modal connectivity in the transport and infrastructure sectors.
India’s global logistics rank has increased from 44 in 2018 to 38 in 2023. Meanwhile, the PLI scheme launched in 2020 is boosting manufacturing in 14 sectors, attracting investments worth ₹1.76 lakh crore, generating ₹16.5 lakh crore in production, and creating over 1.2 million jobs by March 2025.
India has made significant strides towards improving ease of doing business, rising from 142nd in 2014 to 63rd in 2020. Reforms such as eliminating 42,000 compliances and decriminalizing over 3,700 legal provisions since 2014 have been key contributors to this improvement.
Digital tools are also transforming trade. The National Single Window System simplifies approvals, the Trade Connect e-platform guides exporters to resolve trade queries and expand access to international markets, e-commerce export hubs provide integrated services such as customs, certification, packaging, and warehousing, connecting smaller towns to global markets, and ICEGATE streamlines e-filing, e-payments, online registration for IPRs, document tracking status on Customs EDI, online verification, and more. It has a 24×7 helpline.
New Steps to Take India Globally
Next-Generation GST Reforms
90 percent provisional refund for zero-rated supplies based on system-driven risk screening from November 1, 2025.
The value-based limit for GST refunds on exports has been removed. This will help small exporters as they can claim refunds even on their small-value consignments.
GST on paper packaging, textiles, leather, and wood has been reduced from 12-18 percent to 5 percent, resulting in lower production costs, allowing exporters to offer more competitive prices.
GST on trucks and delivery vans has been reduced from 28 percent to 18 percent, and GST on packaging materials has been reduced, which will reduce freight and logistics costs, thereby increasing competitiveness.
Additionally, GST on toys and sports goods has been reduced from 12 percent to 5 percent, encouraging domestic production, countering cheap imports, and tapping growing global demand.
Export Promotion Mission
The Export Promotion Mission, announced in the Union Budget 2025-26, is being coordinated by the Department of Commerce, the Ministry of MSME, and the Ministry of Finance.
Under the mission, a ₹2,250 crore initiative has been proposed to address challenges related to export credit access, factoring for cross-border trade, and removing non-tariff barriers, with a special focus on supporting MSMEs.
New Trade Agreements
Trade agreements are agreements between countries or regional blocs to reduce or eliminate trade barriers, though mutual negotiations are conducted with a view to increasing trade. Some of the new trade agreements being discussed or ongoing are:
पश्चिम बंगाल में स्वास्थ्य क्रांति: सीएम शुभेंदु अधिकारी का बड़ा ऐलान, राज्य में लागू होगी…
'वंदे मातरम्' पर गरमाई राजनीति: शुभेंदु अधिकारी और बंकिम चंद्र के वंशज ने सोनिया गांधी…
17 अगस्त 2026 का राशिफल: नाग पंचमी और सावन की तीसरी सोमवारी का महासंयोग, जानें…
पश्चिम बंगाल: तारापीठ के होटल में तड़के लगी भीषण आग, 5 श्रद्धालुओं की दर्दनाक मौत,…
बिहार में दर्दनाक हादसा: लखीसराय के अशोकधाम मंदिर में मची भगदड़, 6 श्रद्धालुओं की मौत,…
जौनपुर: पैक्ड पानी के कारोबारियों को बड़ी राहत, BIS सर्टिफिकेशन की अनिवार्यता खत्म, अब FSSAI…