India's exports surge ahead despite global uncertainties

New Delhi, Oct 7 (IANS) India’s total exports of goods and services have increased by 5.19 per cent to $346.10 billion in April-August 2025 from $329.03 billion in the same period of the previous year, despite the uncertainties in global markets triggered by the US tariff hikes, according to an official statement issued on Tuesday.

While goods constituted 53.09 per cent of total exports, services accounted for a 46.91 per cent share during April-August this year.

According to World Bank Data, the world’s export basket is growing at 2.5 per cent, whereas India’s export is growing at 7.1 per cent (2024) outpacing global growth, and indicating the progress of the country on the international front.

The share of exports in India’s GDP has increased from 19.8 per cent in 2015 to 21.2 per cent in 2024, which also indicates the growing relevance of exports in the Indian economy India’s trade performance continued its trend of growth in the first five months of FY 2025–26, too, the statement observed.

Acknowledging this growth trajectory, the government has also set a target of $1 trillion of exports in the current financial year 2025-26 out of which 34.61 per cent has already been achieved in the first five months, according to the statement.

India’s merchandise exports are on an upward trajectory in 2025 with a growth of 2.31 per cent in April-August 2025 to $183.74 billion as compared to $179.60 billion during the same period of the previous year.

India’s non-petroleum and non-gems and jewellery exports increased by 7.76 per cent to $146.70 billion in April-August 2025 from 136.13 billion in the same period last year. This category highlights India’s export strength driven by engineering goods, electronics, pharmaceuticals, chemicals and others.

Electronic goods led the growth momentum, with exports rising by $5.51 billion, which represents 40.63 per cent growth in April-August 2025 compared to the same period of the previous year. In the last 10 years, production of electronic goods increased 6x and export of electronic goods increased 8x. Indian electronic goods exports are rising, with major markets including the USA, UAE, China, Netherlands and UK, driven by Make in India and PLI schemes, the statement explained.

Smartphones remain one of the key growth drivers, with India transforming from a net importer to a net exporter. Smartphone exports have crossed Rs 1 lakh crore within just five months of FY26, which is 55 per cent higher than the same period in the last fiscal.

Engineering goods, India’s traditional export mainstay, also posted steady gains, climbing from USD 46.52 billion in April-August 2024 to $49.24 billion in April-August 2025 with a 5.86 per cent rise. The US remained the leading destination, alongside UAE, Germany, UK and Saudi Arabia. The Indian government has introduced numerous schemes to keep the export of engineering good robust such as Zero Duty Export Promotion Capital Goods (EPCG) and Market Access Initiative (MAI). These initiatives are aimed at encouraging the exporter and to help increase revenue from international markets.

Drugs and pharmaceuticals grew by 7.3 per cent to $12.76 billion in April-August 2025 from $11.89 billion in the same period last year. India’s ability to supply affordable generics and specialty drugs sustained demand from advanced as well as emerging markets, with the US, the UK, Brazil, France, and South Africa featuring as the top buyers.

Readymade garments of all textiles, a labor-intensive sector, continue to contribute positively. Exports rose by 5.78 per cent to $6.77 billion during April-August 2025 compared to the same period last year. Demand remained buoyant in traditional markets, led by the US, the UK, the UAE, Germany, Netherland and Spain, reaffirming India’s strong presence in global apparel supply chains.

India’s exports of other cereals grew by 21.95 per cent in April–August 2025 in comparison to April-August 2024. This includes Rye, Barley, Oats, Fonio, Quinoa, etc, and excludes Wheat, Rice, Maize, and Millet. Top export destinations include Nepal, Sri Lanka, UAE, Bangladesh, and Bhutan.

Meat, dairy, and poultry products posted a 20.29 per cent growth in April-August 2025 when compared to the previous year. These products are exported to Vietnam, the UAE, Egypt, Malaysia and Saudi Arabia.

Tea exports have registered a growth of 18.2 per cent in April-August 2025 in comparison to the same period last year with the the UAE, Iraq, the US, Russian Federation, and Iran emerging as top destinations.

India’s strategic trade ties reflect its growing role in the global economy, with merchandise exports steadily expanding across several countries in the first five months of the current financial year, the statement added.

--IANS

sps/na