India's Record Exports in FY 2024-25 Amid Global Economic Slowdown

1. Total Exports: India achieved its highest-ever exports in the financial year 2024-25, totaling $824.9 billion, which is a 6.01% increase from $778.1 billion in 2023-24.
2. Global Slowdown Impact: This growth occurred despite the global economic slowdown triggered by various factors, including:
   1. Trade disruptions due to the Red Sea crisis
   2. The Ukraine war
   3. Drought in the Panama Canal
   4. Increase in Non-Tariff Measures
   5. Rising energy prices

Key Data and Trends

1. Merchandise Exports: Merchandise exports saw a marginal increase, reaching $437.4 billion in 2024-25, up from $437.1 billion in 2023-24.
2. Services Exports: Services exports reached a historic high of $387.5 billion in 2024-25, reflecting a 13.6% increase from $341.1 billion in 2023-24.

Factors Driving Export Growth

1. Policy Push: The government boosted exports with initiatives like the New Foreign Trade Policy, sector-specific schemes, Trade Facilitation, Districts as Export Hubs, and MSME support.
2. Diversification of Export Markets: Rising demand from Southeast Asia, Africa, and Latin America helped India offset slowdowns in other global markets.
3. Trade Agreements: New bilateral and multilateral trade deals, including the India-UAE Comprehensive Economic Partnership Agreement (CEPA), opened up new markets and reduced barriers, especially for services and electronics.
4. Supply Chain Realignment: India emerged as a reliable alternative in the China-plus-one strategy, attracting global companies to shift part of their supply chains to India.

 

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