Context:

India’s cumulative exports (merchandise and services) during April–July 2025 stood at US$ 277.63 billion, reflecting a 5.23% growth compared to the same period in 2024.

India’s Export and Import Performance (April–July 2025)

Merchandise Exports

·         Key sectors driving growth (July 2025):

o    Engineering Goods: +13.75% → US$ 10.43 billion

o    Electronic Goods: +33.89% → US$ 3.77 billion

o    Gems & Jewellery: +28.95% → US$ 2.39 billion

·         Overall performance (April–July 2025):

o    Non-petroleum exports: +7.70% → US$ 127.46 billion

o    Non-petroleum & non-gems & jewellery exports: US$ 118.40 billion → indicating diversification in India’s export base

Services Exports

·         April–July 2025: US$ 128.43 billion → growth of 7.86% year-on-year

·         Services trade surplus: US$ 63.53 billion, up from US$ 54.34 billion in the same period last year

Top Export Markets (April–July 2025)

·         USA: +21.64%

·         China: +19.97%

·         UAE: +4.62%

·         Kenya: +64.05% (notable rise)

·         Germany: +14.37%

Major Import Sources (April–July 2025)

·         China: +13.06%

·         UAE: +17.67%

·         Ireland: +302.8% (exceptional increase)

·         USA: +12.33%

·         Hong Kong: +36.87%

Trade Deficit:

Despite the export growth, India’s trade deficit remains significant. Total imports during April–July 2025 were US$ 308.91 billion, growing by 4.25%, resulting in a trade deficit of US$ 31.28 billion. While service exports provided a buffer, merchandise imports—especially in electronics, petroleum, and gold—contributed to the imbalance. However, some import items like pulses (-51.62%) and coal (-20.93%) registered negative growth, indicating changing domestic demand and production trends.

Way Forward:

The export performance reflects the benefits of recent initiatives such as PLI schemes, FTA negotiations, and Make in India. However, sustaining growth requires:

• Improved logistics and port infrastructure
• Widening export basket, especially in high-tech sectors
• Addressing trade deficits through import substitution and domestic capacity-building
  focus on supply chain resilience, market diversification, and bilateral trade deals to maintain export momentum and economic stability.

Conclusion:

India’s export growth in 2025 is being driven by sectoral excellence, services strength, and market diversification. These drivers underscore the success of policies like PLI schemes, Foreign Trade Policy 2023, and a focus on ease of doing business and export infrastructure. However, persistent trade deficits and global headwinds require continued policy support, logistics enhancement, and market diversification to sustain momentum.