India’s export sector continues to show steady progress, with total exports rising by 5.19% to USD 346.10 billion during the first five months of the current financial year (April–August 2025), compared to the same period last year. The growth reflects the increasing resilience and competitiveness of the country’s trade ecosystem, driven by diversification, policy reforms, and expanding global partnerships.
Data for August 2025 shows a 4.77% year-on-year growth in overall exports, underlining continued momentum despite global economic uncertainties. Merchandise exports grew by 2.31% during April–August 2025, while services exports registered a robust increase of 8.65%, according to press release.
The government has set an ambitious target of USD 1 trillion in total exports for FY 2025–26. With over a third of the target already achieved in the first five months, there is optimism that the goal can be met, backed by structural reforms and improved global demand.
Exports now account for 21.2% of India’s GDP, up from 19.8% in 2015, reflecting their growing significance in the country’s economic landscape.
Non-petroleum and non-gems & jewelry exports grew by 7.76% to USD 146.70 billion during April–August 2025. Sectors such as engineering goods, pharmaceuticals, chemicals, and electronics have driven this growth. Electronic goods exports rose sharply by 40.63%, with smartphones emerging as a major contributor.
India has transitioned from a net importer to a net exporter of smartphones, with outbound shipments crossing INR 1 lakh crore in just five months. Other traditional segments like cereals, meat, poultry, tea, textiles, and auto components have also performed strongly.
Services exports, a consistent pillar of India’s foreign trade, grew by 8.65% in the April–August period, helping maintain a trade surplus of USD 79.97 billion. Key drivers include IT services, business process management, finance, consulting, and tourism.
The sector’s performance is driven by a young and skilled workforce, expanding digital infrastructure, and continued momentum under government initiatives like Digital India, Make in India, and Startup India.
India’s exports to key markets including the United States, China, Germany, the UAE, Hong Kong, Nepal, Bangladesh, Brazil, and Belgium have shown consistent growth. Engineering goods exports to Germany rose by 11.73%, while electronic goods exports to the US and UAE also posted notable gains.
Ongoing trade negotiations under agreements such as the India-UK Comprehensive Economic and Trade Agreement (CETA), India-EU Free Trade Agreement (FTA), India-Australia Comprehensive Economic Cooperation Agreement (CECA), and the India-UAE Comprehensive Economic Partnership Agreement (CEPA) are expected to open new markets and reduce trade barriers.
The government’s export strategy has been underpinned by multiple initiatives aimed at improving logistics, reducing costs, and supporting MSMEs. Schemes such as the Remission of Duties and Taxes on Export Products (RoDTEP), Trade Infrastructure for Export Scheme (TIES), PM GatiShakti, and district-level export promotion programs have played a key role in enhancing export competitiveness.