Context: 

In a landmark achievement for the Indian economy, the country's total exports for the financial year 2024–25 surged to a historic high of $824.9 billion, marking a 6.01% increase over the previous fiscal’s figure of $778.1 billion.

Key Highlights of India’s Export Performance in FY 2024–25

What’s driving the Export Surge?

1. Services Sector: The services sector remains the major driver of India’s export success, contributing nearly 47% to total exports. Exports from services like:

• Information Technology (IT)
• Business Process Management (BPM)
• Financial services
• Travel and tourism
  registered a 13.6% growth, reaching an all-time high of $387.5 billion.

This performance highlights India's evolving role as a global services hub, particularly in the digital economy, fintech, and outsourcing ecosystems.

2. Non-Petroleum Merchandise: While overall merchandise exports recorded only a marginal uptick (+0.08%), non-petroleum merchandise exports surged by 6.0%, reflecting a healthy trend in high-value manufacturing. Key contributors included:

• Engineering goods (record $116.67 billion)
• Electronics and telecom equipment
• Pharmaceuticals
• Textiles and garments

This diversification indicates progress in India’s efforts to move beyond traditional commodity exports and focus on value-added industrial sectors.

External Demand: India’s export surge has also been bolstered by rising global demand for Indian goods and services, particularly in:

• United States
• European Union
• Southeast Asia
• Middle East and Africa

Improved bilateral trade agreements and expanding diplomatic engagement under India’s Act East and Neighborhood First policies have helped unlock new trade corridors.

India’s top export destinations:

Top merchandise export destinations:

1.       USA

2.      UAE

3.      Netherlands

4.     China

5.     Singapore

Strategic Significance of export performance

The FY25 export performance aligns with key national strategies:

• Foreign Trade Policy 2023, which targets $2 trillion in exports by 2030, combining merchandise and services.
• Government schemes like Production Linked Incentive (PLI), which incentivize manufacturing of electronics, pharmaceuticals, and other export-worthy products.
• Ease of Doing Business, digital trade facilitation, and improved port infrastructure under initiatives like PM Gati Shakti.

These reforms are helping Indian exporters become more globally competitive while reducing bureaucratic hurdles.

Challenges ahead:

Despite the positive figures, India’s export sector must remain cautious of:

• Global inflation and geopolitical tensions (especially in West Asia and Europe)
• Logistics disruptions due to supply chain realignments
• Pressure from rising protectionism and trade barriers in some regions

Conclusion:

The record $824.9 billion in total exports signals that India is firmly on course to become a global trade powerhouse. With services exports booming and non-petroleum merchandise showing steady growth, India is not only diversifying its export base but also enhancing its economic resilience.