India Hits $825 Billion in Exports: What’s Driving the Surge and What Comes Next

India’s export engine is firing on all cylinders. In a significant milestone for the country’s external trade, total exports soared to an all-time high of $824.9 billion in the financial year 2024–25 — a 6.01% jump from the previous year’s $778.1 billion, according to the latest Reserve Bank of India (RBI) data.

This historic leap underscores India’s growing resilience in the global trade arena, driven by a dynamic mix of digital services, non-petroleum manufacturing, and policy-driven growth strategies.

Services Sector Steals the Spotlight

At the heart of this export boom is the services sector, which contributed $387.5 billion, rising 13.6% from $341.1 billion in 2023–24. The March 2025 numbers further cemented this momentum — services exports hit $35.6 billion, a sharp 18.6% spike over the same month last year.

India’s edge in IT, business process outsourcing, financial consulting, and travel services has only sharpened in the digital-first, post-pandemic global economy. The country's digitally-enabled workforce and technology-driven services are now not just competitive — they are essential.

Merchandise Exports Hold Strong

India’s merchandise exports, particularly in non-petroleum categories, also set new benchmarks. They reached $374.1 billion, up 6% from $352.9 billion a year earlier — the highest-ever tally for non-oil exports.

Electronics, pharma, textiles, and engineering goods led the charge. Much of this growth stemmed from two key factors: production-linked incentive (PLI) schemes introduced by the government and an improved logistics ecosystem, including modern ports and faster cargo clearances.

What Drove the Export Surge?

This record-breaking performance wasn’t accidental. It resulted from a convergence of strategic policy, shifting global demand, and India’s improving trade infrastructure.

• Policy Push: The government ramped up efforts to promote exports through sector-specific schemes, trade facilitation measures, and support to MSMEs.

• New Markets, Less Reliance: India aggressively diversified its export destinations beyond traditional partners. Growth in demand from Southeast Asia, Africa, and Latin America offset global slowdowns elsewhere.

• Trade Agreements: Recent bilateral and multilateral trade deals unlocked new markets and reduced trade barriers, especially for services and electronics.

• Supply Chain Realignment: As companies worldwide looked for China-plus-one strategies, India emerged as a trusted and scalable alternative.

The Structural Shift in India’s Trade

Commerce Ministry officials believe India is now witnessing a structural transformation in its export profile. Services, once overshadowed by merchandise, are now a parallel pillar. The shift from raw material exports to high-value, tech-driven services and manufactured goods marks a turning point in India’s economic story.

The Path to $1 Trillion Exports

India’s challenge now is to sustain this momentum. Geopolitical tensions, supply chain disruptions, and interest rate uncertainty in major economies could weigh on trade flows in the near term. But policymakers are betting on digital trade, export hubs, free trade agreements, and skill upgradation to drive future growth.

The RBI’s data not only reflects past performance — it sets the tone for ambitious export targets in the coming years. As India eyes the $1 trillion export milestone, the lessons from FY 2024–25 are clear: innovation, policy coherence, and global integration are the keys to staying ahead in a rapidly evolving trade landscape.