The Department of Commerce’s 2025 Year-End Review highlights a year of remarkable gains across India’s trade performance, export promotion reforms, digital transformation, bilateral and regional engagements, free trade negotiations and overall trade facilitation.
India achieved a historic milestone in external trade in 2024–25, with total exports of merchandise and services reaching an unprecedented US$ 825.25 billion, reflecting a strong annual growth of 6.05 percent. This momentum carried forward into FY 2025-26, with exports during April-September 2025 rising to US$ 418.91 billion, a year-on-year increase of 5.86 percent, marking the highest ever export performance for the first half of any financial year. Both the first and second quarters of FY 2025–26 registered record highs despite a challenging global environment.
The services sector continued to be a major driver, recording a robust US$ 387.54 billion in 2024–25 at a growth rate of 13.63 percent and maintaining this trajectory with US$ 199.03 billion in the first half of FY 2025–26, marking a 9.34 percent increase.
Merchandise exports remained steady at US$ 437.70 billion in 2024–25, with non-petroleum exports growing to a historic US$ 374.32 billion at 6.07 percent growth. Between April and September 2025, merchandise exports rose by 2.90 percent to US$ 219.88 billion.
Export growth during this period was driven by strong performances in electronic goods, engineering goods, pharmaceuticals, marine products and rice, while major destinations such as the United States, the United Arab Emirates, China, Spain and Hong Kong registered notable increases in their imports from India.
A major reform milestone in 2025 was the launch of the Export Promotion Mission (EPM), designed as a unified, modern and responsive framework to replace fragmented legacy schemes. With an outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31, the Mission aligns with the vision of Viksit Bharat @2047 and seeks to strengthen India’s export competitiveness through two core sub-schemes.
NIRYAT PROTSAHAN aims to expand MSMEs’ access to affordable trade finance through interest subvention, export factoring, credit guarantees, e-commerce export credit cards and credit enhancement support for market diversification, while NIRYAT DISHA focuses on non-financial enablers such as quality and compliance support, international branding and packaging, participation in trade fairs, logistics and warehousing facilitation, inland transport reimbursements and trade intelligence. The Mission consolidates schemes such as the Interest Equalisation Scheme and the Market Access Initiative into a single outcome-based system.
The Department also accelerated its digital transformation agenda to strengthen ease of doing business, data-driven policymaking and real-time trade intelligence. Platforms such as Trade e-Connect and the Trade Intelligence & Analytics (TIA) portal are enabling centralised access to exporter services, near real-time market insights and automated reporting. Reforms such as 24×7 e-IEC issuance, the migration to eCoO 2.0 and digitisation of Appendix 4H certificates have significantly enhanced trade facilitation.
The Bharat Aayat Niryat Lab Setu platform was introduced as a unified digital interface integrating accredited testing and inspection agencies across the country to streamline certification for exporters and importers. This platform initially covers laboratories under the Tea Board, Coffee Board and Rubber Board, with phased expansion to other Commodity Boards, EPC-empanelled laboratories and private labs.
Important progress was also recorded under the InCENT Lab-Grown Diamond (LGD) project. Implemented by IIT Madras with a grant of ₹242.96 crore, the project saw the establishment of a fully functional National Centre of Excellence with advanced facilities at three locations. Five commercial CVD machines and two HPHT machines were installed and commissioned with ongoing growth trials. The indigenous development of HPHT machines and fabrication of a solid-state microwave generator – critical for CVD technology – also advanced significantly.
In the domain of international trade agreements, India deepened its global economic integration by operationalising and negotiating several free trade agreements. The landmark India–UK Comprehensive Economic and Trade Agreement (CETA) signed in July 2025 provides duty-free access to 99 percent of Indian exports and is expected to take bilateral trade to US$ 100 billion by 2030. India also continued to build on recent agreements such as the India–UAE CEPA, the Australia–India ECTA and the India–EFTA TEPA. Ongoing negotiations include major agreements with the European Union, the United States, Australia (CECA), New Zealand, Chile, Korea (CEPA upgradation), Peru, Sri Lanka (ETCA), the Eurasian Economic Union, Maldives and the ASEAN AITIGA review. The India–Israel FTA negotiations were revived in 2025 with the signing of Terms of Reference.
Bilateral and regional cooperation saw intensified engagement across all major geographies. In North America, Prime Minister Narendra Modi and President Donald Trump launched the “Mission 500” initiative on 13 February 2025, targeting US$ 500 billion in India–US trade by 2030, with discussions underway for a comprehensive Bilateral Trade Agreement.
India-Canada engagement gained momentum with the 7th Ministerial Dialogue on Trade and Investment, while cooperation with Mexico strengthened through high-level interactions. In Europe, India deepened its partnerships through institutional dialogues with the UK, EU, Netherlands, Portugal, Slovakia, India-Belgium Luxembourg Economic Union (BLEU), Italy, Finland, Romania and Slovenia. The entry into force of the India–EFTA TEPA was marked by the Prosperity Summit 2025 in New Delhi, where EFTA countries committed to mobilising US$ 100 billion in investments into India over fifteen years and support the creation of one million jobs.
In South Asia, India advanced trade facilitation with Nepal by exchanging Letters of Exchange to expand rail-based freight movement and transit routes. India and Maldives signed Terms of Reference for a Free Trade Agreement during the Prime Minister’s visit in July 2025. Engagements in North-East Asia included the 10th India–Taiwan Working Group meeting, which facilitated the first export of Indian organic tea to Taiwan.
In West Asia and North Africa, India worked to strengthen its trade architecture with Israel, the UAE, Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the GCC as a whole, making progress on multiple CEPA and FTA tracks and reviewing implementation of existing agreements. Bharat Mart in Dubai advanced towards construction, with completion expected in 2027. The India–UAE CEPA Joint Committee reviewed the agreement comprehensively and agreed on further facilitation measures. India and Oman advanced their CEPA towards internal approvals after successful renegotiations.
In Africa, India held Joint Trade Committee and Working Group meetings with Uganda, South Africa and Zambia, identifying significant opportunities across sectors such as agriculture, health, mining, MSMEs and renewable energy. The 20th CII India-Africa Business Conclave convened senior leaders from 65 countries and facilitated over 2,000 B2B meetings, reinforcing India’s role as a key partner in Africa’s economic growth.
The Directorate General of Foreign Trade (DGFT) continued playing a pivotal role through policy rationalisation, timely authorisations and strengthened digital governance. It issued a range of policy updates covering import and export regulations for pulses, fabrics, urea, platinum, areca nut and sensitive commodities, aligned Import and Export Policy Schedules with legislative updates, restored RoDTEP benefits for SEZs and EOUs, and aligned export obligation periods for Advance Authorisations involving QCO-regulated inputs.
DGFT introduced an online system for correcting unutilised Duty-Free Import Authorisations, allowed CA certificates for Diamond Imprest Authorization applications pending ITR filing, updated India’s SCOMET list in alignment with the Wassenaar Arrangement and extended technologist validity in EIC-approved establishments. Major digital reforms included expanding the verified Source from India directory and launching pilot operations of the Lab Setu platform for integrated testing services.
Overall, the Department of Commerce’s 2025 Year-End Review reflects a year of strong export performance, transformative policy reforms, digital modernisation, expanding global partnerships and a forward-looking strategy to position India as a competitive, technology-driven and globally integrated trade powerhouse in the years leading to Viksit Bharat @2047.
