India's Exports Touch New Heights with Annual Milestone

India's export landscape shines as the country's combined exports of merchandise and services touched an unprecedented USD 824.9 billion in the fiscal year 2024-25, marking a 6.01% increase over the previous year, according to the Union Commerce Ministry's latest report. This achievement surpasses initial expectations of USD 800 billion.

The significant rise in exports is chiefly attributed to services, which climbed 13.6% to USD 387.5 billion, setting a historic high. In contrast, merchandise exports saw a marginal increase, reaching USD 437.42 billion. Meanwhile, India's imports for goods and services tallied USD 77.75 billion in May, contributing to a reduced monthly trade deficit of USD 6.62 billion.

However, the annual trade deficit widened to USD 94.26 billion from USD 78.1 billion a year prior. The government's Production Linked Incentive (PLI) scheme proved fruitful in stimulating export growth, especially in the electronics sector. Looking ahead, market predictions on Probo suggest a 45% probability of India's exports crossing USD 950 billion in FY 2025-26.

(With inputs from agencies.)