India's export sector is currently experiencing significant tailwinds, as highlighted by recent discussions at the Exim Bank Trade Conclave. Finance Minister Nirmala Sitharaman addressed the gathering, emphasizing the country's robust export growth and the positive impacts of recent trade reforms.
India's total exports have surged to an all-time high of $825 billion in the fiscal year 2024-25. This represents a remarkable 6.3% growth, especially considering that global trade only grew by 4% during the same period. This impressive performance underscores India's growing competitiveness and resilience in the international market. The Finance Minister specifically credited tariff reductions, manufacturing reforms, and the progress made on Free Trade Agreements (FTAs) for this export momentum. These factors have collectively created a more favorable environment for Indian businesses to expand their global footprint.
Several key sectors are contributing significantly to India's export success. Electrical and electronics, machinery, chemicals, pharmaceuticals, petroleum, apparel, gems, and agriculture are among the top performers. Specifically, the electronics sector has witnessed a substantial boost, driven by the Production-Linked Incentive (PLI) scheme and increasing global demand for EV components and smart devices. Engineering goods exports also remain encouraging, demonstrating the sector's ability to navigate international challenges.
The government's commitment to trade reforms is evident in various initiatives. Duty reforms, including rationalizing custom duties on key products like electronics, seafood, and textiles, are aimed at creating a seamless trade ecosystem. By correcting inverted duty structures and lowering input costs, these reforms are designed to enhance the competitiveness of Indian manufacturers in the global market. Furthermore, the launch of BharatTradeNet, a unified digital platform for trade documentation and financing, aims to simplify trade processes, improve efficiency, and reduce transaction costs. This platform aligns India's trade infrastructure with global best practices, enhancing the ease of doing business and trade transparency.
India is actively pursuing Free Trade Agreements (FTAs) with several key partners, including the US, UK, and the European Union. These agreements are expected to provide Indian exporters with better access to alternative markets and further boost trade. As of 2025, India has 13 active FTAs and is reevaluating its investment treaties to align with contemporary economic realities. The FTA with the UK is particularly noteworthy, and a webinar is scheduled to discuss its key provisions and strategic implications.
While India's export performance is strong, there are challenges to address. Imports are rising faster than exports, leading to a higher trade deficit. Geopolitical tensions, such as the Israel-Iran conflict, pose risks to the exporting community, potentially leading to higher input costs and logistical disruptions. To mitigate these challenges, the government is focusing on strengthening import monitoring systems, using trade remedial measures to protect domestic industries, and maintaining public infrastructure investment to attract private investments.
Looking ahead, India is well-positioned to regain a strong export growth trajectory. Experts believe that global trade conditions are likely to stabilize in the second half of 2025, which would further support India's export ambitions. The government's continued focus on trade reforms, infrastructure development, and export promotion schemes will be crucial in sustaining this growth and achieving the ambitious goal of USD 1 trillion in goods and services exports in the coming years. The emphasis on diversification, MSME empowerment, and regional development through export hubs will also contribute to a more inclusive and sustainable export ecosystem.
