India's Export Sector Posts 4.45 Percent Growth In H1 FY2025 Despite Global Challenges
India's export sector saw significant shifts in September 2025, with UAE, Spain, China, Bangladesh and Egypt emerging as top five destinations recording strong year-on-year growth.
Published : October 16, 2025 at 11:54 AM IST
By Saurabh Shukla
New Delhi: India's export economy continues to gather pace, with cumulative exports of merchandise and services reaching an estimated USD 413.30 billion during the period from April to September 2025, registering a 4.45 percent increase over the same period last year.
Bolstered by strong performances in sectors like electronic goods, petroleum products and engineering, the country's merchandise exports climbed to USD 220.12 billion, up 3.02 percent year-on-year. In a further vote of confidence, the International Monetary Fund (IMF) has upgraded India's growth forecast for 2025 to 6.6 percent, citing robust domestic demand and export momentum.
India's total exports including both merchandise and services are estimated at USD 67.20 billion for September 2025, marking a modest 0.78 percent growth, compared to the same month last year. On the import side, the country saw a more significant rise with combined imports reaching an estimated USD 83.82 billion, up 11.34 percent from September 2024.
During the first half of the financial year, India's trade performance excluding petroleum and gems and jewellery continued to show steady growth. Non-petroleum exports rose to USD 189.49 billion, up from USD 177.03 billion in the same period last year. Non-petroleum imports also increased, reaching USD 282.98 billion compared to USD 265.80 billion between April and September 2024. When both petroleum and gems & jewellery are excluded, exports stood at USD 175.29 billion, reflecting an improvement over USD 163.09 billion in the previous year, while imports in this category grew from USD 224.97 billion to USD 243.58 billion. Notably, gems and jewellery imports include precious materials such as gold, silver, pearls and various precious and semi-precious stones.
Trade Highlights
India's export sector saw significant shifts in September 2025, with the UAE, Spain, China, Bangladesh and Egypt emerging as the top five destinations recording strong year-on-year growth. Among them, Spain led with a remarkable 150.81 percent surge in export value compared to September 2024, followed by Egypt (67.29 percent), China (34.18 percent), UAE (24.33 percent) and Bangladesh (23.06 percent). Over the broader April to September 2025 period, the top export destinations showing positive growth were USA (13.37 percent), UAE (9.39 percent), China (21.96 percent), Spain (40.33 percent) and Hong Kong (23.53 percent).
On the import side, Switzerland and Nigeria saw the most dramatic jumps in September 2025, with import values rising by 254.57 percent and 896.11 percent, respectively, compared to the same month last year. Similarly, UAE (32.83 percent), China (16.35 percent) and Saudi Arabia (18.86 percent) were other key contributors to import growth. For the April-September 2025 period, India's top sources of import growth were China (11.25 percent), UAE (13.22 percent), Ireland (200.09 percent), USA (9.03 percent) and Hong Kong (19.99 percent).
The Ministry of Commerce has acknowledged the latest growth projections for India published in the October 2025 update of the IMF's World Economic Outlook (WEO). India's GDP is now expected to grow by 6.6 percent in 2025, followed by 6.2 percent in 2026. This marks an upward revision for 2025 compared to the IMF's July update, reflecting robust economic performance in the first quarter of the fiscal year. According to WEO, this positive momentum has more than offset the impact of higher effective tariff rates imposed by the United States on Indian imports since July.
"India continues to be a bright spot in the global economy," the Ministry of Commerce stated, adding that it will "work in close coordination with concerned stakeholders to sustain this momentum and ensure inclusive, sustainable growth".
Exports To US Plunge 37.5%
Meanwhile, India's exports to the United States have taken a significant hit, tumbling nearly 37.5 percent over five months following the introduction of steep US tariffs. In September alone, shipments fell to USD 5.5 billion, registering a sharp 20.3 percent drop from August and the lowest monthly figure this year.
Founder of Global Trade Research Initiative, Ajay Srivastava analysed that the decline marks the fourth straight month of falling exports and September was the first full month under Washington's 50 percent tariff on most Indian goods. The impact has been especially harsh on key industries like textiles, gems and jewellery, engineering goods and chemicals, all these being major contributors to India's export economy, he said.
The downturn began in May, when exports briefly rose to USD 8.8 billion before the duties kicked in. Since then, the US has become India's most severely affected market with losses now exceeding USD 3.3 billion in monthly export value, he added.
FIEO Eyes Stronger Manufacturing, New Markets
Speaking on the trade data, Federation of Indian Export Organisations (FIEO) President, SC Ralhan told ETV Bharat that the consistent growth in exports, despite formidable global headwinds, underscores the commendable efforts of Indian exporters and their growing competitiveness on the world stage. At the same time the increase in imports calls for a renewed focus on building domestic manufacturing capabilities in critical sectors such as electronics, machinery and intermediate goods. At the same time, he has urged the government to take bold steps toward import substitution, by encouraging local production and enhancing global competitiveness through innovation and scale.
He also added that while the United States continues to be India's largest export destination, followed by the UAE, Netherlands, China, the UK, and Germany, there is substantial untapped potential in regions such as Latin America, Africa and ASEAN. With well-targeted export promotion strategies and market diversification efforts, India can deepen its global footprint and reduce overdependence on a few markets.
Commenting on trade data, EEPC India Chairman Pankaj Chadha said that engineering goods exports maintained growth momentum in the month of September 2025, even as high US tariffs weighed on margins and competitiveness.
According to the data, the value of engineering goods shipments in September 2025 stood at USD 10.11 billion as compared to USD 9.82 billion in September 2024, thus registering a growth of nearly three percent. On the other hand, exports in the April-September period of the current financial year 2025-26 grew 5.35 percent year-on-year to USD 59.36 billion as compared to USD 56.34 billion in the corresponding period of the previous financial year.
Pankaj Chadha also mentioned that except for May 2025, monthly engineering goods exports have so far stayed positive in the current fiscal year. While we expect that the first part of the proposed bilateral trade agreement (BTA) with the US would be finalised soon, uncertainties regarding its timeline and scope prevails, he added.
"We have already suggested some measures to mitigate the impact of the Trump tariff. They include a scheme for affordable export finance and providing government support for better marketing of Indian products abroad. We have also proposed FTAs with key Latin American countries such as Chile, Peru, and Mexico to get duty-free market access. This will also help us to de-risk from the US," he added.
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