India’s Trade Performance in FY 2024–25

In FY 2024–25, India’s total exports of goods and services reached a record high of USD 820.93 billion, marking a 5.50% growth from USD 778.13 billion in FY 2023–24 as per data  released by the Ministry of Commerce & Industry.

Trend of Trade

• India’s exports to the US reached an all-time high of USD 86.51 billion, with March 2025 alone recording USD 10.14 billion showing a 35% increase over March 2024.
• Imports from China rose to USD 113.45 billion, the highest ever, with a sharp 25% surge in March 2025 alone.
  • Exports to China declined by 14.5%, falling to USD 14.2 billion, a figure lower than in FY 2013–14.
  • The trade deficit with China stood at USD 99.2 billion, pointing to structural dependencies.
• The overall trade deficit widened to USD 94.26 billion, as total imports rose by 6.85%, amounting to USD 915.19 billion for the financial year.

India’s Total Trade – FY 2024–25 (April–March) (Values in US$ Billion)

Merchandise and Services Trade Performance

• Merchandise Trade: Merchandise exports stood at USD 437.42 billion, showing marginal growth (0.08%) from USD 437.07 billion in FY 2023–24.
  • Merchandise imports increased by 6.20% to USD 720.24 billion, compared to USD 678.21 billion in the previous year.
  • The merchandise trade deficit widened to USD 282.83 billion, up from USD 241.14 billion in FY 2023–24.
• Services Trade: Services exports registered strong growth of 12.45%, reaching USD 383.51 billion from USD 341.06 billion.
  • Services imports increased to USD 194.95 billion, up from USD 178.31 billion, maintaining a healthy services trade surplus.

Indian Government Initiatives to Boost Exports

• New Foreign Trade Policy (2023): Launched on April 1, 2023, this policy focuses on boosting exports through enhanced trade facilitation and sector-specific strategies.
• Interest Equalization Scheme: Extended till June 30, 2024, this scheme offers subsidized interest rates on pre- and post-shipment rupee export credit to make Indian exports more competitive.
• RoDTEP Scheme: The Remission of Duties and Taxes on Exported Products scheme refunds embedded taxes to exporters, ensuring cost competitiveness in global markets.
• Districts as Export Hubs: This initiative identifies high-potential export products in each district and supports local producers to increase exports and generate employment.
• Common Digital Platform for Certificate of Origin: A unified online system that simplifies trade documentation and encourages greater use of Free Trade Agreements by exporters.

Challenges and Global Trade Outlook

• The World Trade Organization (WTO) forecasts a 0.2% decline in world merchandise trade in 2025 under current tariff conditions.
• Services trade is projected to grow by 4%, slower than earlier expectations.
• Uncertainty and rising trade barriers are seen as major challenges to sustained global trade recovery.