Despite Global Storms, India’s Exports Sail Past $820 Billion: Can the Momentum Continue?

In a year shadowed by global economic turbulence, rising geopolitical tensions, and disrupted trade routes, India has quietly pulled off a trade feat that deserves attention. The country’s exports—across both goods and services—have crossed the $820 billion mark in the financial year 2024-25, clocking a 5.5% year-on-year growth.

At a time when many economies are struggling to maintain their trade numbers, India’s export sector has not only weathered the storm but managed to grow. And that’s not a small achievement.

But what’s driving this resilience? And what more does the country need to sustain this global momentum?

India's Export Amid Global Crisis

The total exports for the financial year stood at USD 820.93 billion, a jump of 5.5% from the previous year. But a deeper look reveals a mixed bag.

While merchandise exports saw only a marginal increase of 0.08%, reaching USD 437.42 billion, it was the services sector that came to the rescue. The sector’s robust performance helped compensate for the sluggish pace in goods exports, highlighting the growing importance of India’s digital, IT, fintech, consulting, and knowledge economy on the global stage.

On the flip side, imports rose significantly—by 6.62%—touching USD 720.24 billion, which widened the annual trade deficit to USD 282.82 billion.

Zooming into the monthly picture, March 2025 alone saw merchandise exports worth USD 41.97 billion, a slight increase of 0.7% compared to the same month last year. However, imports surged 11.3% to USD 63.51 billion, leading to a monthly trade deficit of USD 21.54 billion.

Services Sector: The Unsung Hero

While global demand for physical goods has remained sluggish, India's services have emerged as a powerful growth engine. S C Ralhan, President of the Federation of Indian Export Organisations (FIEO), pointed out that services exports were instrumental in boosting the overall export performance.

In his view, the services sector is not just cushioning the trade balance but actively driving India’s global reputation as a knowledge and digital powerhouse. From IT to financial services and professional consulting, Indian companies are making their mark worldwide—especially in emerging and transitioning economies.

The Bigger Picture: Growth Amidst Uncertainty

This growth comes at a time when international trade is grappling with multiple challenges—escalating geopolitical tensions, reconfiguration of supply chains, tighter monetary policies in major economies, and inflationary pressures globally.

For India, which is aspiring to become a global trade leader and boost manufacturing through initiatives like ‘Make in India’, crossing the USD 820 billion export mark is a milestone—but also a signal. A signal that there’s untapped potential, and with the right strategy, even greater heights can be achieved.

What More Needs to Be Done?

Despite the positive headline figure, the slow pace of growth in merchandise exports and the ballooning trade deficit highlight deeper challenges. Ralhan of FIEO strongly believes that India needs to act strategically and swiftly to capitalise on this momentum.

Some of the key areas that need urgent attention, as outlined by FIEO:

• Enhancing Export Competitiveness: Indian products must stand out in terms of quality, price, and reliability to compete globally.

• Diversification of Products and Markets: Relying too heavily on a limited set of export items or countries increases vulnerability. India needs to explore untapped markets and new product categories.

• Addressing Infrastructure and Logistics Gaps: Efficient ports, faster customs clearance, and better last-mile logistics can be game-changers for exporters.

• Easing Regulatory Hurdles: Streamlining compliance and documentation processes can help MSMEs and startups enter the global market with ease.

• Improved Access to Credit: Small businesses often struggle to get affordable finance. Making credit easier and cheaper can empower more exporters.

FIEO’s Role and Vision Forward

As the apex export promotion body, FIEO has been working closely with industry stakeholders and the government. Ralhan emphasized the need for continued collaboration, calling for policy support that is both strategic and agile in nature.

He added that the goal is not just to maintain numbers but to accelerate India’s transformation into a global export hub—one that is resilient, diversified, and innovation-driven.

Why This Matters for Startups and MSMEs

For India’s vibrant startup and MSME ecosystem, this export milestone opens new doors. As global demand for tech-enabled solutions, sustainable products, and niche services grows, Indian startups have a golden opportunity to scale internationally.

However, this requires a supportive policy environment, better financing, and easier access to international markets—areas where public-private collaboration will be critical.

With the government’s increasing focus on manufacturing, exports, and innovation-driven growth, the time is ripe for startups to start thinking beyond borders.

Crossing the $820 billion export mark is more than a number. It’s a testament to India’s grit, its economic engine, and the determination of its exporters. But the world isn’t getting any easier. To stay ahead, India will need to innovate faster, export smarter, and act bolder.

In the words of FIEO’s chief, “We must now aim not just to sustain this performance but to scale it. The world is changing—and we must move faster.”