By Anjani Kumar, Senior Journalist
India’s exports soared to a record $824.9 billion in FY25, driven by engineering goods, pharmaceuticals, and services, defying global headwinds like the Red Sea crisis and geopolitical tensions.
India’s exports reached an all-time high of $824.9 billion in FY 2024-25, a 6% rise from $778.1 billion in FY23-24, despite global trade disruptions from the Red Sea crisis, Russia-Ukraine war, and rising protectionism. From 2015 to 2025, strategic government policies, diversified export baskets, and resilient services sectors fueled this growth, positioning India as a global trade powerhouse.
Export Performance Overview (2015–2025)
India’s export journey over the past decade reflects robust growth despite global challenges like the 2020 pandemic, supply chain disruptions, and geopolitical tensions. Total exports (merchandise and services) grew from $468.4 billion in FY15-16 to $824.9 billion in FY24-25, a compound annual growth rate (CAGR) of 5.8%. Post-2015 recovery saw steady growth, with a rebound in FY21-22 ($676.2 billion) driven by pent-up demand and economic normalization. FY22-23 hit $770.2 billion, and FY24-25’s record $824.9 billion underscores India’s resilience.
Key Sector Performance
India’s export success stems from diversification and strength in high-value and traditional sectors:
Engineering Goods: Exports grew from $62.3 billion in FY13-14 to $109.3 billion in FY23-24, with a 7.4% year-on-year (YoY) increase to $9.4 billion in January 2025. Key products include industrial machinery, auto components, and electrical equipment. The Engineering Export Promotion Council reported a 10.5% rise in September 2024 ($9.8 billion).
Pharmaceuticals: Exports rose from $15.1 billion in FY13-14 to $27.9 billion in FY23-24, with a 21.5% YoY surge to $2.6 billion in January 2025. India, the largest supplier of generic drugs globally, benefits from Production Linked Incentive (PLI) schemes and bulk drug parks.
Electronics: Mobile phone exports soared from $0.2 billion in FY14-15 to $15.6 billion in FY23-24, driven by PLI schemes and global manufacturers like Apple and Samsung. Smartphone exports to the US jumped from $4.7 billion to $7.4 billion in FY24-25.
Agricultural Products: Rice exports increased 44.6% YoY to $1.4 billion in January 2025, supported by the Agricultural and Processed Food Products Export Development Authority (APEDA). Total agri-exports reached $26.7 billion in FY23-24, with marine products like frozen shrimp contributing $7.8 billion.
Textiles and Apparel: Exports grew to $44.4 billion in FY22-23, a 41% YoY rise, driven by schemes like the Mega Integrated Textile Region and Apparel (MITRA) Park. In FY24-25, ready-made garments saw a 12.3% growth.
Gems and Jewellery: Exports reached $25.7 billion by February FY24-25, a 15.9% YoY rise to $3 billion in January 2025, supported by reduced import duties and MSME incentives.
Services Exports: Services exports surged from $152 billion in FY13-14 to $387.5 billion in FY24-25, a 13.6% YoY increase []. IT, telecommunications, and business services led, with India ranking seventh globally in services exports (4.3% of world share in 2022).
E-commerce Exports: E-commerce exports, a growing segment, reached $2 billion in FY24-25, facilitated by platforms like Amazon and the ‘Trade Connect e-Platform’.
Government Initiatives Driving Growth
India’s export growth is bolstered by proactive policies:
Make in India (2014): This initiative attracted $84 billion in FDI by FY21-22, doubling from $45 billion in FY14-15, boosting manufacturing in electronics and pharmaceuticals.
Production Linked Incentive (PLI) Schemes: Allocated $27 billion across 13 sectors, PLI schemes drove $153 billion in electronics production and $100 billion in exports by 2025.
Foreign Trade Policy (FTP): The 2023 FTP emphasizes digital transformation and dynamic policy updates, replacing multiple export councils with a single trade body.
Remission of Duties and Taxes on Exported Products (RoDTEP): Launched in 2021, RoDTEP enhances competitiveness by refunding unrebated taxes.
National Logistics Policy (2022): Investments in ports, roads, and railways under the PM Gati Shakti initiative improved India’s Logistics Performance Index ranking from 44th in 2018 to 38th in 2023.
Free Trade Agreements (FTAs): FTAs with the UAE and Australia, and ongoing talks with the US and EU, expanded market access, reducing reliance on traditional markets.
Niryat Bandhu Program: Supports SMEs with trade counseling, aiding 40% of exporters.
Navigating Global Headwinds
India faced significant challenges from 2022 to 2025:
Red Sea Crisis: Disruptions increased freight costs by 30% and delayed shipments, impacting textiles and electronics.
Geopolitical Tensions: The Russia-Ukraine war and Israel-Hamas conflict raised energy prices, affecting petroleum exports ($55.5 billion in FY22-23).
Protectionism: The EU’s Carbon Border Adjustment Mechanism (CBAM) threatens chemical and machinery exports, with compliance costs estimated at $1.5 billion annually.
Demand Slowdowns: Recessions in developed economies reduced demand for textiles and leather, with textile exports declining 5.3% in 2023.
Despite these, Commerce Secretary Sunil Barthwal noted, “India performed better than the global average,” attributing success to diversified markets (US, UAE, Netherlands) and products.
Challenges and Opportunities
Persistent challenges include:
Infrastructure Gaps: High logistics costs (14% of GDP vs. 8% in China) and port delays hinder competitiveness.
Regulatory Complexity: SMEs face bureaucratic hurdles, with 30% citing customs delays.
Currency Volatility: Rupee depreciation (from 66 to 83 INR/USD, 2015–2025) boosted competitiveness but strained margins.
Skills Gap: Only 72,000 AI and tech professionals are available against a need for 150,000, limiting high-tech exports.
Opportunities include leveraging e-commerce, targeting emerging markets (Africa, ASEAN), and investing in R&D for high-value sectors like biotechnology ($1.2 billion export potential by 2030).
Global Context
India’s 6% export growth in FY24-25 outpaced global merchandise trade growth (2.6% in 2024). China’s exports fell 8.2% YoY in April 2025 due to US tariffs, while Vietnam and Taiwan saw 5–6% growth, aligning with India’s trajectory. India’s services exports outperformed peers, with the US ($7.4 billion in smartphones) and UAE as top destinations.
Quote from Economic Survey 2024-25
The Economic Survey 2024-25 stated, “Services and non-petroleum, non-gems exports grew 10.4%, showcasing India’s competitiveness despite global trade disruptions”.
References
[1] Reserve Bank of India, “India’s Export Data FY24-25,” 2025.
[2] Ministry of Commerce, “Trade Statistics FY21-22,” 2022.
[3] Economic Survey 2024-25, Government of India, 2025.
[4] Engineering Export Promotion Council, “September 2024 Report,” 2024.
[5] Ministry of Commerce, “Pharmaceutical Exports FY23-24,” 2024.
[6] Invest India, “Electronics Manufacturing Report,” 2024.
[7] APEDA, “Agricultural Exports FY23-24,” 2024.
[8] Ministry of Textiles, “Textile Exports FY22-23,” 2023.
[9] Gem and Jewellery Export Promotion Council, “FY24-25 Report,” 2025.
[10] Economic Survey 2023-24, “Services Exports,” 2024.
[11] DGFT, “Trade Connect e-Platform Launch,” 2024.
[12] India Brand Equity Foundation, “Make in India Impact,” 2024.
[13] Ministry of Commerce, “PLI Scheme Progress,” 2025.
[14] World Bank, “Logistics Performance Index 2023,” 2023.
[15] Ministry of Commerce, “FTA Updates,” 2025.
[16] Hindustan Times, “Red Sea Crisis Impact,” 2024.
[17] NITI Aayog, “CBAM Impact Assessment,” 2024.
[18] NASSCOM, “India Tech Skills Gap,” 2024.
[19] World Trade Organization, “Global Trade Forecast 2024,” 2024.
[20] China National Bureau of Statistics, “Export Data April 2025,” 2025.
[21] FIEO, “Export Resilience FY24-25,” 2025.
