India’s total exports of goods and services reached a historic high of $820.93 billion during the financial year ending March 31, 2025, marking a 5.5 percent increase from $773 billion in the previous fiscal year. This achievement comes despite uncertainties in global markets, as highlighted by Commerce Secretary Sunil Barthwal.
Merchandise exports contributed $437.4 billion to the total, with non-petroleum exports rising 6 percent year-on-year to $374.08 billion. However, India’s trade deficit widened to $21.54 billion in March, up from $14.05 billion in February, according to data from the Ministry of Commerce and Industry. Merchandise exports for March increased marginally by 0.7 percent to $41.97 billion, while imports surged by 11.3 percent to $63.51 billion, resulting in a larger trade deficit.
Compared to February, exports saw a 13.75 percent increase, while imports rose by 24.6 percent. These figures reflect the impact of global market disruptions, including the hike in US tariffs. India is currently negotiating a bilateral trade agreement with the US, which has paused the implementation of steeper duties for 90 days.
The first phase of the bilateral trade agreement is expected to be finalized within the tariff-pause period, with terms of reference already established. Negotiations are set to begin virtually, with the possibility of in-person discussions later. Officials are closely monitoring trade practices to prevent other countries from routing their exports through India to bypass higher tariffs. The Central Board of Indirect Taxes and Customs has been alerted to ensure compliance.
Commerce Minister Piyush Goyal emphasized India’s strong case for a bilateral trade deal with the US, citing the nation’s growth potential and demographic advantages. He highlighted India’s large, aspirational, and youthful population as a key driver of demand for goods and services over the next 25-30 years.
Prime Minister Narendra Modi and US President Donald Trump have set an ambitious target of achieving $500 billion in bilateral trade by 2030, underscoring the strategic importance of the agreement. The ongoing negotiations reflect the commitment of both nations to deepen economic ties and address global trade challenges.
India’s record-breaking export performance demonstrates resilience and adaptability in the face of global uncertainties, paving the way for enhanced economic cooperation and mutual prosperity. The bilateral trade agreement with the US is expected to further strengthen India’s position in the global trade landscape.
