India’s total exports of goods and services surged by 5.5% to a record $820.93 billion in the financial year ending March 31, 2025, up from $773 billion in the previous year, according to Commerce Secretary Sunil Barthwal. The increase comes despite significant headwinds in the global market, including rising protectionism and tariff hikes.
Merchandise Exports, Imports and Trade Deficit
India’s merchandise exports for FY25 stood at $437.4 billion, with non-petroleum exports contributing $374.08 billion, a 6% year-on-year increase. However, in March alone, merchandise exports rose marginally by 0.7% to $41.97 billion, while imports jumped by 11.3% to $63.51 billion, widening the trade deficit to $21.54 billion, up from $14.05 billion in February.
Compared to February, March exports rose 13.75%, and imports spiked by 24.6%, Ministry of Commerce and Industry data revealed.
India–US Bilateral Trade Deal in Focus
Amid global market instability largely caused by US tariff hikes, India is actively engaging in discussions with the United States to establish a bilateral trade agreement. Official sources indicate that the first phase of the deal is expected to be concluded within the 90-day tariff-pause window granted by the Trump administration.
The terms of reference for the agreement have already been finalized. While most negotiations will take place via video conferencing, both sides remain open to in-person talks if needed.
India Monitors Export Routing Amid Tariff Changes
Indian authorities are closely monitoring trade flows to prevent third countries from using India as a route to bypass US tariffs. The Central Board of Indirect Taxes and Customs (CBIC) has also been alerted to prevent Indian exporters from engaging in re-routing practices that could compromise India’s credibility.
“India has always been a trusted partner to the US, and such actions could negatively impact its global trade image,” senior officials cautioned.
Goyal: India Offers a ‘Compelling Case’ for US Trade Deal
Commerce Minister Piyush Goyal, speaking to the media last week, expressed optimism about the ongoing trade discussions with the United States. “Very good negotiations are underway,” Goyal said, as per IANS.
Highlighting India’s strong growth potential, Goyal added, “With a young, aspirational population, India presents a compelling case for a long-term, mutually beneficial agreement with the US. The next 25–30 years will see increased demand for goods and services, making India an ideal trade partner.”
