India’s Exports Soar to Record USD 821 Billion in FY 2025

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.

Conclusion

In conclusions, India’s record-high exports of USD 821 billion in FY2024–25 mark a defining moment in the country’s economic growth story. This achievement is not just a numerical milestone but a testament to the resilience, adaptability, and innovation of Indian industries. With strategic policies, diversification of markets, rising value-added exports, and robust government support, India is on track to become a leading global export hub. The focus ahead must remain on sustainability, upskilling, R&D in high-tech exports, and leveraging FTAs to maintain this upward trajectory. As India eyes the USD 2 trillion export target by 2030 of which USD 1 trillion will come from Merchandise exports and USD I trillion will come from services exports, the foundation laid in recent years will drive the future of global trade integration.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}