To reduce its reliance on the US market, India has been expanding its trade diplomacy. After the Gulf Cooperation Council bloc-wide deal stalled, India signed a CEPA with the UAE.
In 2024-25, India exported $387.54 bn worth of services, against imports of $198.14 bn, earning all-time high surplus of $189.40 bn. This offset 2/3rd of goods trade deficit.
India posted healthy growth in exports in October, even as imports grew sequentially. Donald Trump’s policy stance will have significant impact on India’s trade balance with US.
Despite contraction in exports, India’s merchandise trade deficit improved in 2023-24, owing to steeper drop in imports. However, the trade deficit with China & Russia widened.
This comes when many global agencies have revised upwards their global growth projections for 2024, which could further boost exports. US India’s top export destination, followed by UAE.
Centre has set an export target of $2 trillion by 2030, offering benefits to boost exports of electronics, engineering, pharmaceutical, and other goods.
Data shows re-alignment in India’s exports, with Tamil Nadu & Telangana posting strong growth in 2024-25 as traditional heavyweights Gujarat & Maharashtra see declines. Gujarat still leads, though.
Of the total package, $649 million will be utilised for additional hardware, software, and support services, and the remaining for Major Defence Equipment (MDE).
Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.
It would have been nicer if the author had also talked of India’s textile and apparel sector, which is among those hit hardest by the 50% tariff imposed by the United States on Indian goods, effective August 27. The US is the single-largest market for India’s textile and apparel items, with around 28% of these Indian goods being sold in the world’s No. 1 economy. India’s textile and apparel exports to the US in the financial year 2024-25 stood at nearly $11 billion.
It would have been nicer if the author had also talked of India’s textile and apparel sector, which is among those hit hardest by the 50% tariff imposed by the United States on Indian goods, effective August 27. The US is the single-largest market for India’s textile and apparel items, with around 28% of these Indian goods being sold in the world’s No. 1 economy. India’s textile and apparel exports to the US in the financial year 2024-25 stood at nearly $11 billion.