India’s Export Growth Outpaces Global Markets in 2025

India’s export sector continues to outpace global growth in 2025. With a 7.1% growth rate compared to the world’s 2.5%, India is strengthening its position as a key player in international trade. The share of exports in India’s GDP rose to 21.2% in 2024, reflecting the increasing importance of exports in the economy. Government reforms, digitalisation, and entrepreneurial initiatives are driving this growth, with a target of USD 1 trillion exports set for 2025-26.

Merchandise Export Growth Trends

Merchandise exports grew by 2.31% in April-August 2025, reaching USD 183.74 billion. Non-petroleum and non-gems exports rose 7.76%, led by engineering goods, electronics, pharmaceuticals and chemicals. Electronic goods surged 40.63% driven by Make in India and Production Linked Incentive (PLI) schemes. Smartphone exports alone crossed INR 1 lakh crore in five months. Other cereals, meat, dairy, poultry and tea exports recorded double-digit growth, supported by government policies like the Agriculture Export Policy and APEDA.

Key Export Commodities and Destinations

Electronics, engineering goods, drugs and textiles remain export mainstays. India’s engineering exports grew 5.86%, with the USA, UAE, Germany, UK and Saudi Arabia as major markets. Pharmaceutical exports rose 7.3%, catering to advanced and emerging economies. Tea exports increased 18.2%, making India the world’s second-largest exporter. India’s strategic export destinations include China, USA, Germany, Hong Kong and South Korea, reflecting diversified trade ties and expanding industrial capabilities.

Services Exports – Driving Economic Resilience

India’s services exports grew 8.65% in April-August 2025, contributing a trade surplus of USD 79.97 billion. Key sectors include IT, business process management, financial services and tourism. Technological adoption in cloud computing, AI and fintech, backed by schemes like Digital India and Startup India, fuels this growth. A youthful workforce and liberalised FDI norms further enhance competitiveness. Trade agreements such as India-UK Comprehensive Economic and Trade Agreement (CETA) support market expansion.

Government Initiatives Boosting Export Competitiveness

The Foreign Trade Policy 2023 and schemes like RoDTEP reimburse embedded duties to exporters, reducing costs. District Export Action Plans activate local economies across 734 districts. Infrastructure schemes such as Trade Infrastructure for Export Scheme (TIES) and PM GatiShakti improve logistics and transport efficiency. The PLI scheme has attracted ₹1.76 lakh crore investment and created over 12 lakh jobs. Ease of Doing Business reforms and digital platforms like National Single Window System streamline trade processes.

Next-Generation Reforms and Trade Agreements

GST reforms from November 2025 include 90% provisional refunds for zero-rated supplies and reduced GST rates on packaging and textiles. These lower production and logistics costs. The Export Promotion Mission with ₹2,250 crore funding focuses on export credit and MSME support. New trade agreements with the UK, EU, Australia, New Zealand, Oman, Peru, Chile and UAE aim to reduce barriers and open markets, enhancing India’s global trade footprint.