India’s merchandise exports are expected to reach $124.8 billion in the fourth quarter of FY25, marking a 3.64% increase compared to the same period last year. According to estimates from the Export-Import Bank of India (Exim Bank), total exports for the financial year will likely hit $446.5 billion, reflecting a 2.2% rise from FY24.
Non-oil Exports Leading the Way
Non-oil exports are set to rise by 11.34%, hitting $109.3 billion. At the same time, exports without oil, gems, and jewels are likely to go up by 10.1%, bringing the total to $350 billion.
Key Reasons for Export Growth
The Exim Bank says the rise in India’s exports is due to many things, such as:
Strong farm output
A bounce back in making goods
Better need from trade partners around the world
Problems and Future Outlook
Even with this good trend, India’s export area has problems like unclear trade rules, world tensions, and split markets. Still, the good trend is likely to continue into the first part of FY26, helped by strong manufacturing and farm exports.
Trade Deficit Shrinks in December
India’s trade gap improved in December, falling to $21.94 billion from $32.84 billion in November. This was due to a rise in goods exports, which went up to $38.01 billion from $32.11 billion in November. On the other hand, imports fell to $59.95 billion, down from $64.95 billion the month before.
Year-on-Year View
While the month-to-month trade gap improved, the year-on-year trade gap grew to $18.76 billion from $18.76 billion in December 2023. Exports in December 2024 dropped by 1% from $38.39 billion in the same month last year. Imports went up by 4.8% from $57.15 billion in December 2023.
Despite short-term ups and downs, India’s exports continue to rise steadily, thanks to global needs and strong domestic production.
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