India’s exports reach record high

The increase was driven by services, although the export of goods remained flat

Indian goods and services exports rose by around 5.5% to a record $820.93 billion in the 2024-25 financial year, according to data released by the Commerce Ministry on Tuesday.

Goods exports for 2024-25 stood at $437.42 billion, marginally higher than the previous year’s $437.07 billion, according to the ministry. The Reserve Bank of India (RBI) releases foreign trade data for services with a one-month delay, and the most recent data available is for February, which the Commerce Ministry based its calculations on.

Officials from the ministry said trade for the month of March remained largely unchanged. Although India’s overall goods exports in 2024-25 were largely stagnant, the country’s non-petroleum exports have seen significant growth, according to ministry data.

Non-petroleum exports for 2024-25 reached $374.08 billion, up from $352.92 billion in the previous year, according to data. The key drivers of the marginal goods export growth included engineering goods, electronics, pharmaceuticals, ready-made garments, and agricultural products such as rice, cotton, coffee, spices, tea, and tobacco, officials said. 

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Recently, the RBI reduced its key interest rate to boost the economy and reduce the impact of US tariffs. According to Commerce Secretary Sunil Barthwal, India’s overall success can be attributed to a targeted government strategy which focuses on 20 key countries, six merchandise sectors, and six service sectors, as well as ongoing engagement with stakeholders, export promotion councils, Indian missions abroad, and relevant ministries.

The Commerce Ministry estimates that the slow growth in goods exports will be offset by an increase in services exports, with India expected to achieve a record-high export value of $820.93 billion. Imports were up in the period, resulting in a 20% increase in the trade deficit, as per government data.

This comes amid US President Donald Trump’s 26% reciprocal tariffs on exports to the US, which have been put on hold until July. The top five destinations for India’s goods exports in 2024-25 are the US, UAE, Netherlands, UK, and China.