India's goods and services exports may cross $800 billion in FY25, says Piyush Goyal

Commerce Minister Piyush Goyal

India's goods and services exports may cross $800 billion by the end of the current fiscal, setting a new record despite challenges from geopolitical tensions, Commerce and Industry Minister Piyush Goyal said on January 3.

This would be higher than the earlier record of $776.68 billion in overall exports during the previous fiscal year.

"Due to geopolitical situation, there will be stresses in the system, but we have a large basket in both goods and services," Goyal said, adding that an increase in shipping costs due to the Red Sea crisis limited the growth in Indian exports to US, Europe, Latin America and African nations.

India’s total exports during April-November are estimated at $536.25 billion, implying a positive growth of 7.61 percent. Total imports during April-November 2024 are expected to increase by 9.55 percent.

While India's merchandise trade deficit came in 18.4 percent higher year-on-year at $202.42 billion during the first eight months of the current fiscal, the country is seen maintaining a surplus on the services side at $119.48 billion.

The country's widening trade gap on the goods side can be primarily attributed to a spike in imports.

Merchandise exports rose by a mere 2.71 percent year-on-year in April-November to $284.31 billion, while goods imports grew at a faster rate of 8.34 percent to $486.73 billion.

However, robust services exports have been keeping a lid on India's overall trade deficit.

Services exports are seen growing by 14.48 percent on-year in April-November, while imports are expected see an increase of 14.19 percent.

"Despite challenges, exports continues to labour on with significant growth collectively for goods and services. Imports have been quite high but it is a sign of a growing economy in a way. It shows there is a demand for inputs, demand for white goods that encourages people to come and invest in India," Goyal said.