India has achieved a significant milestone in exports during the fiscal year 2024-25. According to the Federation of Indian Export Organisations (FIEO), the country's total exports are projected to reach US$1 trillion, reflecting a 21% increase. In the previous fiscal year, this figure stood at US$824.9 billion, a 6.01% rise compared to US$778.1 billion the year before.
The services sector played a crucial role in this growth. Robust performance in IT, business, financial services, and travel services led to a 13.6% increase in service exports, reaching US$387.5 billion. Merchandise exports reached US$437.4 billion, with non-petroleum exports totaling US$374.1 billion, a 6% increase year-on-year.
India Still Lags Behind China
Despite this growth in India's export sector, its global position remains relatively weak. China's exports last year were approximately US$3.51 trillion, significantly higher than India's. The United States' total exports were US$3.05 trillion, and Germany's were US$2.10 trillion.
FIEO President S.C. Ralhan emphasized the need for India to diversify its export strategy. Expanding into emerging markets and strengthening trade relationships with existing partners can boost exports. Furthermore, focusing on value-added products rather than raw materials is a crucial step towards increasing India's export earnings.
Focus on New Markets and FTAs, Logistics Improvement Crucial
India recently strengthened its trade agreement with the UK, and negotiations are underway for an initial agreement with the US. Experts believe that agreements like FTAs can provide Indian exporters with easier access to new markets. Additionally, improved infrastructure, reduced logistics costs, and a focus on producing goods that meet international standards can help India enhance its global competitiveness.
