Trade deals will bring opportunities for Indian agriculture. But there will also be challenges
India’s trade performance in FY25 showed resilience amid global uncertainties. Total exports rose 6.5% to \$820.93 billion, driven by services and merchandise. Imports increased 6.85% to \$915.19 billion, widening the trade deficit to \$94.26 billion. Despite this, a strong trade-to-GDP ratio of 41.4% highlights India’s growing integration with global markets and ongoing trade liberalization efforts.
In a year marked by the Donald Trump administration’s shifting tariffs and global geopolitical tensions, India’s trade performance faces several challenges. While the India-UK Free Trade Agreement has been successfully concluded, the government is negotiating a bilateral trade agreement with the US. In the meantime, it would be interesting to review and reflect on India’s trade performance in the financial year 2024-25 (FY25).
India’s total exports, comprising goods and services, increased to $820.93 billion in FY25. This marks a 6.5 per cent increase over FY24. Merchandise exports accounted for $437.42 billion (53 per cent), while services, powered by India’s global edge in IT, finance, and business solutions, contributed $383.51 billion (47 per cent). Imports, however, grew at a faster clip of 6.85 per cent, reaching $915.19 billion in FY25. Of total imports, merchandise made up the lion’s share (79 per cent) with $720.24 billion, while services added $194.95 billion (21 per cent). This pushed the trade deficit to $94.26 billion, up from $78.39 billion in FY24. With the IMF pegging India’s nominal GDP at $4.19 trillion in FY25, the trade-to-GDP ratio stands at a robust 41.4 per cent — this reflects a deeper link with global markets.
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Source : The Indian Express
