Merchandise exports grew by a modest 0.7 % to $41.97 billion in March, in what showed a marginal recovery from the contraction witnessed in the previous four months. Import of goods rose by 11.3% to $63.15 billion in the month, precipitating a trade deficit of $21.54 billion.
For the whole of 2024-25, the country’s goods exports stood at $437.42 billion, a flat growth of 0.08% year on year on a low base, while imports rose 6.62% to $720.24 billion. In 2023-24, goods exports had declined by 3.1%.
Inclusive of services, the overall exports crossed $ 820 billion, recording a growth of 5.5% on year.
Services exports in the last financial year are estimated at $ 383.51 billion, a healthy growth of 12.4% on year. In the services sector imports were $ 194.95 billion, resulting in a surplus of $ 188.56 billion.
Shipments in March exceeded the performance of the past 11 months in absolute terms, on the back of higher engineering and electronics shipments. This may also have been helped by hurried shipments for fear of reciprocal tariffs by the US. The US, which accounts for 18% of India’s goods exports, has announced a 90-day pause on the additional tariff of 26% announced earlier, but a baseline tariff of 10% exists, along with a 25% duty on steel and aluminum items.
Despite global challenges like disruption in sea routes due to geopolitical tensions and recession in some countries the merchandise exports touched the “highest ever” figures in 2024-25, commerce secretary Sunil Barthwal saids.
“The government will be waiting for the final figures of services, but our internal assessment is that overall exports in 2024-25 will go up by two more billion dollars. So it should be a figure of more than $842 billion,” he added.
The merchandise exports holding up and its growth remaining in despite a $ 20 billion drop in exports of petroleum products in FY 25 shows how other sectors of the goods exports have packed up. Petroleum exports were down 24.73% to $ 63.34 billion in the last financial year. Much of the decline was due to lower international prices of crude oil. Gems and jewellery exports fell 7.33% to $ 29.81 billion while chemical exports were down 2.3% to $ 28.70 billion.
The sectors that showed growth were engineering, electronics, pharma, ready-made garments of all textiles, rice, cotton yarn/fabrics, plastics, coffee, spices, tea and tobacco. Engineering exports, which are more than a quarter of total merchandise exports, were up 6.74% to $ 116.67 billion, electronics exports grew 31.79% to $ 38.38 billion, pharma exports were up 9.40% to $ 30.47 billion and readymade garment exports were up 10.04% on year to $ 15.99 billion.
To feed the electronics manufacturing the electronics imports grew to $ 98.73 billion in FY 25 from $ 87.86 billion in 2023-24.
Rice exports were up 19.67% to $ 12.47 billion, cotton yarn and fabrics exports grew 3.25% to $ 12.06 billion and plastics 10.25% to $ 8.92 billion.
According to the data, gold imports increased to $ 58.01 billion last fiscal against $ 45.54 billion in 2023-24 as the prices of yellow metal touched new highs during the period. In volume terms, the imports dipped to 757.15 tonnes in 2024-25 against 795.32 tonnes in the previous year.
India’s merchandise trade deficit slumped to $14.05 billion in February 2025, the lowest level since August 2021. Exports were down 10.8% to $36.9 billion in February, registering fourth straight month of contraction. Imports plunged by a sharper 16.3% to $ 50.96 billion, the lowest level since April 2023.