India’s total exports of goods and services rose by 5.5% to a record $820.93 billion in the financial year ending March 31, 2025, compared to $773 billion in the previous year, according to Commerce Secretary Sunil Barthwal. This growth comes despite global economic uncertainties and trade tensions.
Merchandise exports stood at $437.4 billion, while non-petroleum exports registered a 6% year-on-year increase, reaching $374.08 billion in FY25.
However, India’s trade deficit widened to $21.54 billion in March, up from $14.05 billion in February, according to data from the Ministry of Commerce and Industry. Merchandise exports rose marginally by 0.7% to $41.97 billion during the month, while imports surged by 11.3% to $63.51 billion, leading to the broader gap.
Compared to February, exports in March jumped 13.75%, while imports grew 24.6%.
These developments come amid rising tensions in global markets, particularly after the US hiked tariffs on several imports. India is currently engaged in talks with the United States to finalise a bilateral trade agreement, with the US agreeing to pause the tariff hikes for 90 days.
According to official sources, the first phase of the agreement is expected to be concluded within this pause period. The terms of reference have already been finalised, and negotiations are taking place primarily through video conferencing. If needed, Indian officials may travel to Washington, or US officials may visit New Delhi.
Authorities are also on alert to prevent any misuse of trade routes. A close watch is being maintained to ensure that other countries do not route their exports through India to evade US tariffs. Similarly, the Central Board of Indirect Taxes and Customs (CBIC) has been instructed to monitor that Indian exporters do not use third countries to reroute goods.
Officials emphasized that India remains a trusted trade partner of the US, and any such circumvention could damage that reputation.
Speaking to journalists last week, Commerce and Industry Minister Piyush Goyal described the ongoing negotiations with the US as “very good.” He said India offers a strong case for a trade deal, given its economic potential and demographic strengths.
“Considering the growth trajectory India is expected to follow over the next 25–30 years, with a young, aspirational population driving demand, we believe India presents a compelling case for a strong bilateral trade agreement with the United States,” Goyal said at a press conference.