India’s merchandise exports fell 2.38% to $36.43 billion in January 2025, reflecting a slowdown in global demand. Meanwhile, imports surged by 10.28% to $59.42 billion, leading to a wider trade deficit of $22.99 billion.
Reasons for Export Decline
The drop in exports is attributed to global economic uncertainties, geopolitical tensions, and supply chain disruptions. However, some industries, like electronics, pharmaceuticals, and rice, showed resilience despite challenges.
From April 2024 to January 2025, India’s total exports reached $358.91 billion, growing at a modest 1.39%. However, imports during this period rose 7.43% to $601.9 billion, further increasing the trade imbalance.
Government’s Efforts to Boost Exports
To tackle the widening deficit, the government has introduced several measures, including:
- Duty exemptions for electronic components and EV battery materials to encourage domestic manufacturing.
- Tax relief for shipbuilding and repair industries to strengthen the maritime sector.
- Simplified trade procedures to enhance ease of doing business.
These initiatives aim to support exporters and improve India’s position in the global trade market. However, sustained efforts will be needed to counter external challenges and boost export growth in the coming months.
