India’s trade sector continued to expand in 2025, showcasing resilience amid global economic fluctuations. With steady growth in both merchandise and services exports, the country reinforced its position as a key player in global trade. Let’s dive into the latest trade data, sectoral highlights, and emerging trends shaping India’s trade landscape.
Exports: A Year of Growth 📈
India’s total exports (merchandise + services) for April-January 2024-25 stood at USD 682.59 billion, marking a 7.21% increase compared to the same period in 2023-24.
🔹 Merchandise Exports: USD 358.91 billion (1.39% growth)
🔹 Services Exports: USD 323.68 billion (14.49% growth)
Despite global economic uncertainties, key sectors like electronic goods, pharmaceuticals, and engineering goods fueled export growth.
Top Performing Export Sectors 🚀
📦 Electronic Goods – 78.97% increase from USD 2.29 billion (Jan 2024) to USD 4.11 billion (Jan 2025).
💊 Drugs & Pharmaceuticals – 21.46% growth reaching USD 2.59 billion.
🔩 Engineering Goods – 7.44% growth, totaling USD 9.42 billion.
🌾 Rice Exports – 44.61% increase from USD 0.95 billion to USD 1.37 billion.
💎 Gems & Jewellery – 15.95% growth, hitting USD 3 billion in Jan 2025.
This export boom was driven by strong global demand, improved production capabilities, and enhanced trade agreements.
Imports: The Rising Demand 📦
India’s total imports (merchandise + services) for April-January 2024-25 reached USD 770.06 billion, marking a 8.96% increase compared to last year.
🔹 Merchandise Imports: USD 601.90 billion (up from USD 560.27 billion)
🔹 Services Imports: USD 168.17 billion (up from USD 146.48 billion)
The rise in imports was primarily driven by higher demand for essential raw materials, machinery, and capital goods. However, a notable decline was seen in oil & petroleum imports, which helped moderate the overall import bill.
India’s Trade Deficit: A Rising Concern?
While exports showed robust growth, India recorded a trade deficit of USD 87.47 billion for April-January 2024-25, up from USD 70.06 billion in the previous year. The key driver behind this widening deficit was the increase in imports of high-value goods and industrial equipment.
Key Trade Partners 🌍
Top 5 Export Destinations
Top 5 Export Destinations
1️⃣ USA – 39.02% growth in Jan 2025 vs. Jan 2024
2️⃣ Japan – 53.53% increase
3️⃣ Bangladesh – 17.27% growth
4️⃣ UK – 14.84% increase
5️⃣ Nepal – 20.84% rise
Top 5 Import Sources
1️⃣ China – 17.06% increase
2️⃣ Thailand – 136.63% rise
3️⃣ USA – 33.46% growth
4️⃣ Germany – 72.15% increase
5️⃣ UK – 101.62% rise
These figures highlight India’s strong trade relations with both traditional and emerging markets, reinforcing its global economic ties.
Looking Ahead: The Future of India’s Trade 🚀
With a focus on “Make in India” and self-reliance, India is expected to strengthen its manufacturing base and reduce dependency on imports. Key factors that will shape trade in 2025-26 include:
✅ Boosting domestic manufacturing under PLI (Production-Linked Incentive) schemes.
✅ Diversifying exports to new markets like Africa & Latin America.
✅ Expanding trade agreements with the UAE, UK, and EU.
✅ Investing in logistics and port infrastructure to improve trade efficiency.
As India continues its journey towards a $5 trillion economy, its trade sector will play a pivotal role in driving economic growth, job creation, and global competitiveness.