India is currently in negotiations with some its major trade partners, including the US, EU, and the UK, to finalise trade tariffs and terms. With its total exports touching an all-time high of USD 824.9 billion in the financial year 2024-25, the country’s trade prospects are only set to grow, says the Federation of Indian Export Organisations (FIEO).
The body’s president, RC Ralhan, said Indian businesses are aiming exports to the tune of USD 1 trillion in the current financial year 2025-26. Merchandise exports will reach USD 525-535 billion, he said, while services export will reach USD 465-475 billion.
The FIEO president also said they are eyeing 12 per cent and 20 per cent growth in merchandise and services exports during the fiscal year, respectively.
The 2024-25 exports exceeded the initial anticipation of USD 800 billion, marking a yearly growth of 6.01 per cent over USD 778.1 billion exports in 2023-24, thereby setting a new milestone.
In 2024-25, services exports continued to drive the growth momentum, reaching a historic high of USD 387.5 billion, up 13.6 per cent from USD 341.1 billion in the previous year.
In the same year, merchandise exports excluding petroleum products rose to a record USD 374.1 billion, registering a 6.0 per cent increase from USD 352.9 billion in 2023-24 – the highest ever annual non-petroleum merchandise exports.
FIEO also recommended a few strategies to enhance future export performance, including expansion into emerging markets and strengthening trade relations with current partners.
Shifting focus from raw materials to value-added products can increase export earnings and reduce vulnerability to price fluctuations in global commodity markets, the body said.
“Negotiating and implementing Free Trade Agreements (FTAs) with key partners can facilitate easier market access and reduce trade barriers,” it added.
Further, investing in quality infrastructure, reducing logistics costs, and ensuring compliance with international standards will improve the competitiveness of Indian exports. Leveraging digital platforms for marketing, sales, and customer engagement can open new avenues for exports, particularly in the services sector.
“By implementing these strategies, India can enhance its export performance, contributing to economic growth and positioning itself as a formidable player in global trade,” FIEO said.
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