India Eyes $1 Trillion Export Target Amid Global Turbulence
India's June 2025 export data release coincides with geopolitical tensions and fluctuating global prices. While merchandise exports saw a decline, service exports increased, reducing the trade deficit. The government targets $1 trillion exports in FY2025-26, leveraging FTAs and the PLI scheme to bolster its global trade position.
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India is poised to release its export data for June 2025, as geopolitical tensions and economic uncertainties continue to cloud the global trade landscape. The end of hostilities between Iran and Israel, coupled with fluctuating U.S. tariffs and rising crude oil prices, are likely to impact June's trade figures significantly.
In May 2025, India's exports, including both goods and services, reached USD 71.12 billion, reflecting a 2.77 percent increase from the previous year. Despite a drop in merchandise exports from USD 39.59 billion to USD 38.73 billion, service exports surged from USD 29.61 billion to USD 32.39 billion, narrowing the trade deficit to USD 6.62 billion from USD 9.35 billion a year ago.
The government has launched several initiatives, such as the Production Linked Incentive (PLI) scheme across 14 sectors, to enhance export competitiveness. Targeting $1 trillion in exports for FY2025-26, India is leveraging free trade agreements with countries like the UK and UAE to strengthen its global supply chain involvement.
(With inputs from agencies.)
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