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Export Trend in India: Opportunities, Challenges & Growth

ruchika

Ruchika Gupta

Senior Specialist- Growth & Marketing @ Shiprocket

July 5, 2025

8 min read

For decades, exporting has been playing an essential role in a country’s economy. It has been creating a range of opportunities, including scaling businesses and generating additional employment. In today’s tech-driven and digitally connected world, India is undergoing rapid evolution, with notable shifts in its export trends. The country is working hard to grab the ideal time for Indian businesses to scale their exports and position itself as a leading player in global exports. 

A statistic from a government official’s website states that the cumulative export for April-May 2025 is estimated at US$ 142.43 billion. There is an estimated growth of 5.75% compared to US$ 134.69 billion in April and May 2024

The export trend in India is growing, driven by government-led initiatives, advanced digital infrastructure, and increasing demand for Indian goods in non-traditional markets. They are all accelerating this momentum, and January 2025 was a promising start. This blog outlines the key growth drivers and market projections for 2025.

export trend in india

Export Highlights from January 2025

According to the Ministry of Commerce and Industry, the total exports in India (including merchandise and services) reached USD 74.97 billion in January 2025. It is a YOY growth of 9.72% compared to January 2024

These numbers clearly show that India is emerging as a leader in global trade, despite geopolitical tensions and rising freight costs. 

Key Trade Figures – January 2025

Total ExportsUSD 74.97 billion (+9.72% YoY)
Total ImportsUSD 77.64 billion (+12.98% YoY)
Trade DeficitUSD -2.67 billion
Merchandise ExportsUSD 36.43 billion
Non-petroleum ExportsUSD 32.86 billion (+14.47%)
Non-petroleum & Non-gems-jewellery ExportsUSD 29.87 billion (+14.33%)

Top Sectors Fuelling Export Momentum

Electronic Goods+78.97% (USD 4.11B vs. USD 2.29B in Jan 2024)
Engineering Goods+7.44% (USD 9.42B vs. USD 8.77B)
Drugs & Pharmaceuticals+21.46% (USD 2.59B vs. USD 2.13B)
Rice+44.61% (USD 1.37B vs. USD 0.95B)
Gems & Jewellery+15.95% (USD 3B vs. USD 2.59B)


India’s Trade Reach Across Key Markets

RegionExport Value (2024)Leading CommoditiesNotable Trends
United States$79.44 BillionGems, Electronics, Pharma, MachineryiPhone exports up 76%; diamond exports impacted by tariff revisions
European Union$52.34 BillionApparel, Machinery, Agricultural ProductsHighest trade levels in a decade; FTA dialogues ongoing
Middle East (UAE)$37.1 BillionJewelry, Mangoes, Mineral FuelsSurge in mango exports; strong UAE ties
Africa$45 BillionMineral Fuels, Pharma, Engineering GoodsLocomotive exports to Guinea rising
ASEAN$44 Billion (FY 2023)Engineering, Agri-Products, ChemicalsFTA renegotiation underway; focus on trade balance

Key Contributors to the Current Export Surge

The growth of the export trend in India is not a matter of luck; it is a result of a well-coordinated government initiative and strong performance across multiple sectors. Both together are driving global demand. Here are the main contributors of the current surge:

  1. Diverse Product Portfolio Driving Demand

India’s export basket has expanded beyond traditional sectors. While gems and Jewellery remain consistent performers, new-age industries like electronics, pharmaceuticals, and engineering goods are leading the charge. The export of electronics alone saw a massive 78.97% YoY growth in January 2025. This indicates India’s capacity to grow in high-tech manufacturing.

  1. Government Incentives Fuelling Export Competitiveness

The government’s initiatives are leading the growth of export trends in India. For sectors like electronics, textiles, and pharma, schemes like Production-Linked Incentives (PLI) significantly boosted manufacturing and export volumes. 

Furthermore, other initiatives, such as the Remission of Duties and Taxes on Export Products (RoDTEP) and the Export Credit Guarantee Corporation (ECGC), have become a solution for sellers, providing the necessary financial cushioning and confidence.

  1. Digital Trade & eCommerce Exports on the Rise

The world of digitisation has made exporting even easier. The eCommerce export policies have enabled MSMEs and D2C brands to access international markets more quickly. 

  1. Better Trade Agreements and Market Access

There has been ongoing negotiation for a Free Trade Agreement (FTA) with the European Union, the UK, and countries in Southeast Asia. This is expected to open new doors for Indian exporters. 

The India–UAE CEPA agreement, signed in 2022, has already shown exports rising in the agricultural and Jewellery sectors. 

Hurdles Indian Exporters Are Facing in 2025

Like every coin has two sides, the export trend in India presents both opportunities and challenges. There is no doubt that the performance of Indian exports in 2025 is in positive momentum. However, exporters are facing a few hurdles that are impacting sustained growth.

Let’s find them:

  1. Global Economic Uncertainty & Inflation

Both uncertainty and inflation are the biggest challenges sellers face while exporting. There are ongoing geopolitical tensions, like the Red Sea shipping crisis and fluctuating fuel prices. These fluctuations impact global freight costs. Sellers from Tiers 2 and 3 specifically struggle to maintain price competitiveness when logistics costs spike without warning.

  1. Compliance Complexities & Documentation

Though government and official authorities have moved towards digitisations, exporters still face complex paperwork. It changes compliance norms and delays customs clearance. This challenge is more seen in emerging markets. 

  1. Currency Fluctuations and Payment Risks

The fluctuations in currency prices, especially with the USD-INR, can erode the profit margins of exporters. Furthermore, the risks of delay in international payment or non-payment is also high. 

  1. Logistics Infrastructure Gaps

To create an adequate logistics infrastructure for both exporters and buyers, India is investing in programs like PM Gati Shakti. However, the gaps in last-mile connectivity, multimodal integration, and cold chain logistics still exist. 

  1. Limited Market Intelligence

Most small to mid-sized sellers lack essential information, such as market insights, competitive benchmarking, and buyer analytics, to identify new opportunities or develop effective strategies.

Promising Areas for Indian Exporters in the Global Market

The year 2025 has presented an excellent opportunity for Indian exporters from the outset. A few sectors have experienced remarkable spikes, with global demand increasing rapidly. 

Let’s discuss the most promising areas for Indian exporters in the global market. 

  1. Electronics and Mobile Components

In 2025, India’s electronics exports surged. Smartphone components and assembly lead the country. The government initiative “Made in India” and global brands like Apple scaling up “Make in India” production have significantly impacted this growing demand. 

  1. Pharmaceuticals & Healthcare Products

Undoubtedly, the demand for generic drugs, vaccines, and wellness products remains strong globally. Indian pharma exports grew over 21% YoY in January 2025. High-quality and cost-effective medicines are what drive it. 

  1. Textiles, Apparel & Technical Fabrics

The preference for sustainable and affordable apparel has increased than ever now. This has enabled Indian textile exporters to capitalize on newer markets, such as Africa, Latin America, and Eastern Europe. 

  1. Agro-Based and Processed Foods

The demand for Indian spices, rice, organic products, and ready-to-eat foods has been rising globally. This segment also offers high-margin potential in regions like the Middle East and Southeast Asia.

  1. Gems, Jewellery, and Precious Metals

Gems, Jewellery, and precious metals like gold are in growing demand globally, especially in the US and Gulf countries. In January 2025, this sector alone recorded 15.95% growth YoY. This number clearly indicates that it will continue to dominate India’s export trend. 

  1. Green & Sustainable Products

Most countries worldwide are shifting towards sustainability to deal with rising pollution and its consequences on people’s lives. Indian exporters offering eco-friendly products will dominate the export trend in 2025. 

Eco-friendly textiles, biodegradable packaging, solar equipment, and organic goods are gaining traction in Europe and North America.

Piyush Goyal, Minister of Commerce and Industry, says India can emerge as a sustainable manufacturing hub for the world, with green exports playing a significant role in its $2 trillion export ambition.

ShiprocketX and the Future of Hassle-Free International Shipping

To become a successful Indian exporter, it is essential to have an effective international logistics partner that is both smooth and cost-effective. This is where ShiprocketX comes in. 

Our platform simplifies logistics complexity for sellers and exporters. This empowers you to ship internationally without the usual paperwork headaches.

Here is how it helps you with hassle-free international shipping:

  1. Global Reach
  • Ship to 220+ countries and territories.
  • It enables you to expand your customer base globally with ease. 
  1. Multiple Carrier Options
  • We have partnered with trusted global carriers, including Aramex, FedEx, UPS, and others.
  • You have the option to choose between Express (4–9 days) and Economy (10–14 days) delivery options.
  1. Simplified Documentation
  • You can upload necessary shipping documents in one place.
  • Get auto-generated commercial invoices and customs paperwork.
  • It reduces the chances of delays or rejections at customs.
  1. Real-Time Tracking
  • It enables end-to-end tracking with a single tracking ID.
  • Customers receive tracking updates via email and SMS.
  • It offers a customisable UI setup, allowing you to create your own branded tracking page. It boosts customer trust and post-purchase experience.
  1. Cost-Efficient Fulfillment
  • You are not restricted to any minimum order volume.
  • You have access to competitive shipping rates via Shiprocket’s partner network.
  • It utilise tools such as shipping rate calculators and box-based weight pricing for more efficient shipping.
  1. Seller-Centric Dashboard
  • A centralised dashboard manages orders, shipments, invoices, and reports.
  • You can track your international operations with transparency and ease.

Conclusion

The landscape of Indian exports is brimming with potential in 2025. However, it is essential to tap into analysis, reliability, and smart logistics. 

ShiprocketX enables simplified cross-border shipping, manages compliance, and facilitates faster entry into new markets. 

If you are a D2C brand looking to scale or expand into new geographies, you need multichannel fulfillment and tech-driven logistics. To continue performing on the global stage, you must ensure your business is prepared to do so.  As India sets its sights on becoming a $2 trillion export economy, success will belong to those who combine quality with agility, and logistics with vision.

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