India’s Exports Rise Marginally by 0.7% in March 2025

India witnessed marginal growth in exports and a notable rise in imports in March 2025. The trade deficit for the month widened to $21.54 billion, reflecting pressure on the current account. For the fiscal year 2024–25, merchandise exports showed almost stagnant growth, while overall trade, including services, saw a moderate increase, indicating resilience in service exports despite global uncertainties.

Key Highlights

March 2025 Trade Data

• Exports: Grew by 0.7% year-on-year to $41.97 billion.
• Imports: Rose by 11.3% to $63.51 billion.
• Trade Deficit: Widened to $21.54 billion, up due to a sharper increase in imports.

Full Fiscal Year 2024–25 (April 2024–March 2025)

• Cumulative Exports (Goods): $437.42 billion, 0.08% increase YoY.
• Cumulative Imports (Goods): $720.24 billion, a 6.62% rise YoY.
• Overall Exports (Goods + Services): Rose 5.5% to $820.93 billion.
• Overall Trade Deficit: Remained high due to increasing import demand.

Reasons for the Trade Trends

• Moderate Global Demand: Affected India’s goods exports.
• Import Surge: Higher imports of energy, electronics, and industrial inputs.
• Services Sector: Continued to be a strong contributor to total export growth.
• High Base Effect: Export figures were compared against a strong March 2024.

Implications for Economy

• Widening trade deficit can pressure the current account deficit (CAD).
• Increased import bills may affect foreign exchange reserves.
• Need for export diversification and import substitution policies.