India’s Exports Rise 12.7% in April 2025 Amid US Tariff Talks

India recorded a strong start to FY26 with total exports (merchandise and services combined) touching US$ 73.80 billion in April 2025, reflecting a 12.70% year-on-year (YoY) increase over April 2024. This growth was driven by a rebound in global demand and a sharp uptick in electronic, engineering, and textile goods exports.

Merchandise Exports Maintain Upward Momentum

Merchandise exports for April 2025 rose by 9.02% YoY to US$ 38.49 billion, up from US$ 35.30 billion in April 2024. Notably, non-petroleum exports stood at US$ 31.11 billion, up 10.10% YoY, while non-petroleum, non-gems & jewellery exports came in at US$ 28.61 billion, registering an increase of 10%.

Key merchandise export segments that drove the growth include:

• Electronic Goods: +39.51% (US$ 3.69 billion)
• Engineering Goods: +11.28% (US$ 9.51 billion)
• Gems & Jewellery: +10.74% (US$ 2.5 billion)
• RMG of All Textiles: +14.43% (US$ 1.37 billion)
• Rice: +13.63% (US$ 1.08 billion)
• Marine Products: +17.81% (US$ 0.58 billion)

Robust Services Export Performance

Services exports are estimated at US$ 35.31 billion in April 2025, up 17.01% YoY from US$ 30.18 billion. Services imports rose marginally to US$ 17.54 billion, resulting in a healthy net services surplus.

Imports Outpace Exports, Widening Trade Deficit

Despite the export growth, India’s total imports (merchandise and services) stood at US$ 82.45 billion, rising 15.72% YoY, resulting in a trade deficit of US$ 8.65 billion, compared to US$ 5.77 billion in April 2024.

Imports of key items like coal, pulses, vegetable oils, and transport equipment saw declines, while imports from UAE, China, USA, Russia, and Ireland witnessed strong growth.

Export Destinations: Gains from USA, Australia, and Africa

India's exports saw the most significant growth in markets like:

• USA (+27.31%)
• UAE (+33.65%)
• Australia (+74.16%)
• Tanzania (+87.2%)
• Kenya (+132.44%)

Also Read: India’s Major Ports Set New Records in FY25 with 855 MT Cargo Handled!

Conclusion

India’s export performance in April 2025 reflects strong underlying momentum across both merchandise and services. However, trade policy risks remain on the horizon. The United States, under President Donald Trump, had earlier announced a 26% reciprocal tariff on select Indian goods, effective April 5, 2025. While this additional duty has been suspended for 90 days, until July 9, 2025, to facilitate trade negotiations, its future remains uncertain.

The outcome of these talks will be critical for India’s key export sectors like pharmaceuticals, textiles, and electronics.

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