India’s export economy continues to show resilience and adaptability in the face of global headwinds. According to preliminary estimates, India’s overall exports crossed USD 800 billion in the fiscal year 2024-25 (FY25), marking a significant milestone for the country’s trade ambitions. However, while the services sector delivered robust growth, merchandise exports remained relatively stagnant, reflecting a mixed performance across segments.

Flat Merchandise, Booming Services

Merchandise exports—the traditional backbone of India’s export economy—have shown minimal growth during January-February 2025, compared to the same period last year. Despite this stagnation, India’s economic policymakers remain optimistic, projecting a rebound in merchandise shipments in FY26, driven by strategic market diversification and trade agreements.

In contrast, service exports surged to USD 354.90 billion during April-February 2024-25, a substantial increase from USD 311.05 billion in the same period the previous year. This sharp rise was underpinned by strong demand in sectors such as IT services, financial consulting, telemedicine, and online education.

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Key Data and Sector-wise Impact on India’s Exports – FY25

Export Category	FY25 Estimate	FY24 (Same Period)	Impact & Insights
Overall Exports	USD 800+ billion	USD 776 billion (approx.)	India has sustained its export momentum despite global uncertainties.
Merchandise Exports	Flat growth (Data awaited)	Slight growth in FY24	Limited global demand and supply chain bottlenecks weighed down export performance.
Service Exports	USD 354.90 billion (Apr–Feb)	USD 311.05 billion	Led by IT, healthcare, and professional services; services now a central export pillar.

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Service Export Sectoral Breakdown and Their Global Impact

While sector-wise breakdowns for FY25 will be detailed in the upcoming Commerce Ministry report on April 15, traditionally dominant sectors have continued to deliver:

Service Sector	Contribution & Relevance
IT & ITES	Core contributor; includes software, cloud, and BPO services delivered to global clients.
Travel & Tourism	Gradual recovery post-COVID; increased inbound medical and spiritual tourism.
Financial Services	Cross-border banking, fintech, and insurance solutions exported to major global markets.
Telecommunications	Includes support infrastructure and cross-border mobile and internet services.
Professional Services	Legal, accounting, and management consulting gaining traction in Europe and North America.
Healthcare Services	Telemedicine, diagnostics, and specialized treatment for international patients are growing.
Education & Training	Online learning and international student enrollments in Indian institutions on the rise.
Logistics & Transportation	India’s growing logistics sector is catering to global clients via freight, warehousing, etc.

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Looking Ahead: FY26 and Beyond

While flat merchandise exports in FY25 raise concerns, the resilience of India’s service exports presents a silver lining. The government’s continued push for Free Trade Agreements (FTAs), coupled with investments in port and digital infrastructure, is likely to enhance India’s global trade footprint.

The upcoming Commerce Ministry’s detailed trade report on April 15, 2025, will offer greater clarity and support more targeted policymaking.

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Conclusion

India’s export story in FY25 is a tale of two tracks: a booming service economy and a temporarily muted goods trade. As the country positions itself as a key player in both digital and traditional trade ecosystems, future export performance will depend on how swiftly merchandise shipments recover and how effectively service exports continue to diversify.