India’s export sector has demonstrated a strong growth trajectory during FY 2025–26, reflecting the country’s rising integration with global markets and strengthening competitiveness across merchandise and services exports. According to the PIB Backgrounder, total exports during April–August 2025 increased by 5.19% compared to the corresponding period of the previous year, reaching USD 346.10 billion.The performance highlights the growing role of exports in the Indian economy, supported by government reforms, digital transformation, Production Linked Incentive (PLI) schemes, logistics reforms, trade diversification, and new trade agreements. India’s export growth has also outpaced the global export growth trend, indicating improved resilience amid changing global trade dynamics.
India recorded a 5.19% rise in total exports during April–August 2025 compared to the same period in 2024. Total exports stood at USD 346.10 billion, while exports in August 2025 alone grew by 4.77% over August 2024.Important features include:
| Indicator | Performance |
|---|---|
| Total Exports Growth | 5.19% |
| Merchandise Exports Growth | 2.31% |
| Services Exports Growth | 8.65% |
| Total Exports Value | USD 346.10 Billion |
| Share of Merchandise Exports | 53.09% |
| Share of Services Exports | 46.91% |
The government has also set an ambitious target of USD 1 trillion exports for FY 2025–26, of which nearly 34.61% had already been achieved during the first five months.
India’s merchandise exports rose to USD 183.74 billion during April–August 2025 from USD 179.60 billion in the previous year. Growth was particularly driven by:
Electronic goods emerged as the fastest growing export sector, recording a 40.63% growth during April–August 2025. Smartphone exports crossed ₹1 lakh crore within five months of FY26, reflecting India’s transformation from a net importer to a net exporter of smartphones.The growth has been supported by:
Exports of other cereals such as barley, oats, quinoa and rye increased by 21.95%, reflecting global demand for healthier food products.Similarly, meat, dairy and poultry exports grew by 20.29%, aided by:
Tea exports recorded an 18.20% increase in April–August 2025. India also surpassed Sri Lanka to become the world’s second-largest tea exporter in 2024.Major destinations include:
Engineering goods exports rose by 5.86%, while drugs and pharmaceuticals grew by 7.30%.Key reasons behind the growth include:
The United States remained a major destination for Indian exports in these sectors.
India’s services exports expanded by 8.65% during April–August 2025, reinforcing India’s position as a major global services provider.The major contributors include:
India’s services sector generated a trade surplus of USD 79.97 billion, helping reduce the overall trade deficit.
India’s technology sector accounted for 7.3% of GDP in FY 2024 and is expected to contribute nearly 20% of the economy by 2030.Schemes supporting this growth include:
India possesses the largest youth population in the world, with nearly 65% of the population below 35 years. Skill development programmes such as Skill India continue to provide a skilled workforce for the services economy.
Reforms in FDI policies, including increasing the insurance sector FDI limit from 74% to 100%, have improved India’s investment climate and export competitiveness.
India has increasingly diversified its export markets, reducing overdependence on a single geography.
| Country | Key Observation |
|---|---|
| Hong Kong | Merchandise exports rose by 26.19% |
| China | Exports grew by 19.65% |
| Germany | Exports increased by 11.73% |
| Korea | Exports increased by 9.69% |
| UAE | Strong growth in engineering and petroleum exports |
The diversification strategy is especially important amid changing global trade conditions and tariff-related uncertainties.
The government has introduced multiple reforms aimed at enhancing India’s export ecosystem.
FTP 2023 focuses on:
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme reimburses embedded taxes and levies. Nearly ₹58,000 crore had been reimbursed by March 2025.
These initiatives aim to improve:
India’s logistics ranking improved from 44 in 2018 to 38 in 2023.
Launched in 2020, the PLI scheme has:
India is actively pursuing new trade partnerships to enhance export access.Major agreements under discussion or implementation include:
These agreements are expected to:
Despite strong growth, certain challenges remain:
India will need to continue structural reforms to sustain export competitiveness in the long term.
India’s export sector is witnessing a significant transformation driven by policy reforms, manufacturing expansion, digital innovation, services strength, and global trade diversification. Strong growth in electronics, pharmaceuticals, engineering goods, agriculture and services demonstrates India’s rising role in the global economy.Government initiatives such as PLI, FTP 2023, RoDTEP, PM GatiShakti, GST reforms and trade agreements are creating a stronger export ecosystem. If sustained, these developments can help India achieve its ambitious export targets, generate employment, strengthen foreign exchange earnings and enhance India’s strategic position in global trade.
Agricultural and Processed Food Products Export Development Authority
Updated – 07 October 2025 ; 01:53 PM | PIB | News Source