India’s exports are set to reach a record Rs. 70,00,800 crore (US$ 800 billion) in FY25, driven by strong global demand, increased trade activity, and resilient economic growth. Addressing the Rajya Sabha, Union Minister of Commerce & Industry, Mr. Piyush Goyal, highlighted the consistent rise in exports over the past four years, emphasizing that India’s trade performance remains robust despite global uncertainties.

The foreign exchange (forex) reserves have also remained steady, above Rs. 52,50,600 crore (US$ 600 billion) for several months, reinforcing India’s economic stability. The minister dismissed concerns over a decline in exports and attributed rising imports to higher domestic demand, which reflects a growing economy.

Key Factors Driving India’s Export Growth

The surge in exports is supported by India’s expanding manufacturing sector, global supply chain integration, and government-led initiatives such as the Production-Linked Incentive (PLI) scheme. The country continues to strengthen its presence in pharmaceuticals, IT services, engineering goods, textiles, and chemicals, which are among the top-performing export sectors.

Additionally, India is aggressively working on trade agreements with key partners, including the UAE, the European Union, and the United States, to enhance market access and increase exports. The Make in India and Atmanirbhar Bharat initiatives are further boosting manufacturing and reducing reliance on imports, making Indian products more competitive globally.

Forex Reserves Remain Strong

Despite a rise in imports, India’s forex reserves have remained consistently above US$ 600 billion, ensuring economic stability and safeguarding against external shocks. Strong reserves provide a buffer against currency fluctuations, support trade settlements, and enhance investor confidence in India’s growth story.

The Role of Imports in Economic Growth

While India’s exports are on the rise, imports have also increased, primarily in essential commodities such as:

• Petroleum products – Due to high energy demand
• Coking coal – A key raw material for steel production
• Pulses & edible oils – To meet domestic food demand

Mr. Goyal explained that rising imports are not a cause for concern, as they are driven by increasing domestic consumption and industrial expansion. Over time, import substitution through domestic production units will strengthen the economy, reducing dependency on foreign supplies.

Government’s Strategic Approach to Trade & Growth

The Union Budget for 2025-26 has provided tax relief to the middle class, which is expected to boost consumption spending. Increased consumer demand will, in turn, fuel domestic industries, creating a balanced trade environment where both exports and domestic consumption contribute to economic momentum.

India’s export strategy aligns with long-term economic growth, ensuring that trade performance remains resilient, diversified, and competitive on the global stage. With record-breaking exports, rising forex reserves, and strategic import management, India is well on its way to cementing its position as a global trade powerhouse.

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