India’s Exports Surge by 7.2% YoY in Apr-Jan 2025

India’s total exports recorded a 7.2% year-on-year (YoY) growth during the April 2024 to January 2025 period, as per data from the Ministry of Commerce and Industry. This marks a significant increase in India’s global trade engagement, driven by key industries such as electronics manufacturing and aerospace. However, potential U.S. tariffs pose a challenge to sustaining this momentum.

What Is Driving India’s Export Growth?

One of the major contributors to India’s export rise is electronics manufacturing. Companies like Dixon Technologies, which assembles Google’s Pixel smartphones, have played a crucial role. Dixon reported over ₹285.77 billion in revenue for the nine months ending December 31, showing strong growth from the ₹177.13 billion ($2.04 billion) it earned in the previous fiscal year ending March 2024. The Indian electronics sector is expected to expand from ₹1.46 trillion in 2022 to ₹6 trillion by fiscal 2027, making it a key driver of export growth.

Another factor boosting exports is India’s aerospace industry. With global supply chain challenges affecting Western nations, companies like Airbus and Rolls-Royce have increased their sourcing of components from Indian firms. Bengaluru-based Hical Technologies and JJG Aero have benefited significantly, with Hical targeting a doubling of its aerospace revenue to $57.57 million within three years. The Asia-Pacific aerospace market is expected to be 54% larger in 2024 than in 2019, positioning India as a major supplier.

What Challenges Could Impact Future Exports?

Despite positive growth, India faces challenges in the form of potential U.S. reciprocal tariffs on various exports. If implemented, these tariffs could lead to annual losses of around $7 billion. Key industries at risk include chemicals, metal products, jewelry, automobiles, pharmaceuticals, and food items. In 2024, India exported merchandise worth nearly $74 billion to the U.S., with a significant portion consisting of pearls, gems, pharmaceuticals, and petrochemicals.

Historically, India has maintained an average tariff of 11%, much higher than the U.S. tariffs on Indian goods. To counter potential trade restrictions, the Indian government is considering reducing select tariffs and expanding energy imports to maintain favorable trade relations.

What Is the Government’s Export Target for FY 2025?

The Indian government has set a bold target of surpassing $800 billion in total exports by the end of March 2025. This goal reflects a strategic focus on expanding exports in high-demand sectors while mitigating potential trade risks. By strengthening bilateral trade relations, enhancing production capabilities, and diversifying export markets, India aims to reinforce its global trade standing.

India’s Export Growth: Key Highlights