Record Exports to US: India’s exports to the US reached a record USD 86.51 billion, driven by front-loading shipments ahead of anticipated tariff hikes. In March alone, exports to the US jumped 35% year-on-year, exceeding $10 billion.
Surge in Imports from China: Imports from China increased to USD 113.45 billion, indicating a growing reliance and a widening trade deficit. Overall trade deficit reached $94.26 billion, with imports growing 7% to $915.19 billion. Trade deficit with China specifically hit $99.2 billion, reflecting structural dependencies.
Flat Goods Exports, Growth in Services: Goods exports remained flat at $437.42 billion in FY25, while services exports grew by 12.45% to $383.51 billion, resulting in a healthy services trade surplus.
Sectoral Export Growth: Electronics exports surged by 32% to USD 38 billion, boosted by smartphone shipments. Coffee exports increased by 40% to $1.8 billion due to global supply disruptions in Brazil.
Export Share Increase: India’s export share in the US and UK markets rose by 13.73% and 14.31% respectively.
Engineering Goods Concerns: While engineering goods exports recorded 6.74% growth in FY25, exports declined nearly 4% year-on-year in March. Additional US duties on iron, steel, and auto components could lead to a $4-5 billion drop in engineering shipments to the US.
WTO Warning: The WTO anticipates a 0.2% decline in world merchandise trade volume in 2025 due to global uncertainty.
