Despite global challenges, Indian export expected to reach new record levels

09-Jul-2025 02:06 PM

New Delhi. The Union Commerce and Industry Minister has stated that despite challenges and disruptions in the global market, India’s exports are rising to record-breaking levels and this trend is likely to continue in the coming months.

In the financial year 2024–25, India’s exports reached a new high of $825 billion, and in 2025–26, this figure is expected to climb further, surpassing $870 billion — an all-time record.

The government is particularly focused on boosting the export of value-added and labor-intensive goods and services.

According to the Minister, merchandise exports are projected to grow by 5–6 percent this year, while service exports are expected to increase by 9–10 percent.

Agricultural and food product exports are expected to remain stable, but competition is intensifying in sectors such as electronics, engineering, and pharmaceuticals.

The Minister emphasized that recent Free Trade Agreements (FTAs) with countries like the UAE, Australia, and the UK have strengthened India’s position in global trade. These agreements have led to a notable increase in Indian exports to these nations.

For instance, India's service exports to the UAE have nearly doubled over the past four to five years. Similarly, exports to Australia have increased from around $3 billion to over $8 billion.

However, the pace of export growth to Japan has remained slow. While India has shown interest in entering FTAs with ASEAN countries, Japan, and South Korea, Japan has not agreed yet, and South Korea is still considering the proposal. Trade with China is being approached with caution.

The government continues to encourage exports across all sectors while aiming to reduce the foreign trade deficit to its lowest possible level.

Negotiations for a trade agreement with the United States are also underway, along with efforts to secure trade partnerships with the European Union.