India’s trade registered steady growth in July 2025, supported by robust sales to the United States and healthy performance across key sectors, according to provisional data released by the Ministry of Commerce & Industry,.
Exports — both merchandise and services — grew to US$ 68.27 billion in July 2025, marking a 4.52% increase over July 2024, driven by strong demand for engineering goods, electronics, gems & jewellery, pharmaceuticals, and agrifood products like cereals and coffee. Services exports continued to provide stability, generating a healthy surplus.
However, imports – both merchandise and services for July 2025 grew at US$ 79.99 billion, registering a positive growth of 6.07% vis-a-vis July 2024.
Export resilience in a volatile global environment
India’s total exports (merchandise and services combined) for July 2025 were estimated at US$ 68.27 billion, a growth of 4.52% compared to July 2024. This expansion is particularly significant given the global trade backdrop of slowing demand, continued geopolitical tensions, and rising tariff barriers in key markets such as the United States.
Merchandise exports rose to US$ 37.24 billion, recording a growth of 7.3% year-on-year, driven by engineering goods, electronics, gems & jewellery, drugs & pharmaceuticals, and organic & inorganic chemicals. Engineering goods the backbone of India’s industrial exports, grew 13.75% to US$ 10.43 billion, highlighting competitiveness in sectors such as machinery, transport equipment, and capital goods.
Similarly, electronics exports surged 33.89% to US$ 3.77 billion, a reflection of India’s expanding role as a global electronics manufacturing hub. Gems & jewellery also made a notable contribution exports grew nearly 29% to US$ 2.39 billion, reflecting global festive and investment demand.
Pharmaceutical exports continued to reinforce India’s reputation as the “pharmacy of the world,” posting a 14.06% increase to US$ 2.66 billion. Similarly, organic and inorganic chemicals expanded 7.19%, signaling diversification within the chemicals sector.
Beyond these top categories, several agricultural and allied exports posted remarkable growth. Cereals (up 71.97%), coffee (up 67.46%), and meat, dairy, and poultry products (up 31.19%) underscore the dynamism of India’s agrifood exports. This signals opportunities for deeper value addition and brand building in global markets.
Source: Complied from Ministry of Commerce and Industry.
Import growth and the widening trade deficit
Merchandise imports accelerated to US$ 64.59 billion in July from US$ 59.48 billion last year, led by machinery and transport equipment. This pushed the monthly merchandise trade deficit to US$ 27.35 billion.
Key drivers of this import surge of Pulses (-51.62%), Leather & Leather Products (-41.1%), Newsprint (-25.73%) and Coal, Coke & Briquettes, Etc. (-20.93%) record negative growth during July 2025 over the corresponding month of last year.
Services trade stability
India’s services sector once again provided a stabilizing cushion. Exports of services were estimated at US$ 31.03 billion in July 2025, marginally higher than US$ 30.60 billion in July 2024 However, Imports of services declined slightly to US$ 15.40 billion from US$ 15.94 billion.
Over the longer horizon (April–July 2025), services exports reached US$ 128.43 billion, reflecting 7.86% growth over the same period in 2024. This demonstrates that, despite increasing global competition in IT and digital services, India continues to maintain a strong foothold through cost advantage, skilled manpower, and diversification into high-value services like fintech, AI-based solutions, and infrastructure.
Cumulative April–July 2025 performance
India’s cumulative exports (merchandise and services) during April–July 2025 reached US$ 277.63 billion, registering 5.23% growth over US$ 263.83 billion in the same period of 2024 while imports (merchandise and services) during the April–July period stood at US$ 308.91 billion, reflecting a 4.25% increase.
Source: Complied from Ministry of Commerce and Industry.
Sectoral and market highlights
- High-Value Growth – Strong growth was seen in electronics (33.89%), meat, dairy & poultry products (31.19%), cereals (71.97%), and coffee (67.46%).
- Agriculture’s Re-emergence: Agrifood exports recorded sharp gains, with cereals (71.97%), coffee (67.46%), and meat, dairy & poultry products (31.19%) leading the charge. This suggests untapped potential for India in global food markets, provided quality standards and value-chain investments are strengthened.
- Export Market: The U.S. remained India’s largest market, with exports rising nearly 20%, followed by strong growth in shipments to the UAE, China, Spain, and Hong Kong. However, reliance on the U.S. poses risks in light of tariff uncertainties.
- Policy Cushion from Services: Services exports remained a critical stabilizer, delivering a large trade surplus that helped offset merchandise trade imbalances.
Outlook
Looking ahead, India’s trade outlook presents both opportunities and risks. The export surge in value-added sectors such as electronics, engineering goods, and pharmaceuticals highlights structural competitiveness. Simultaneously, resilience in services exports ensures stability against global shocks.
However, the widening trade deficit poses a macroeconomic challenge. Persistent current account imbalances could exert downward pressure on the rupee, increase external borrowing requirements, and complicate monetary policy choices. Moreover, global uncertainties—including tariff actions by the U.S., geopolitical tensions in West Asia —continue to cloud the external sector outlook.
To sustain momentum, India will need to focus on:
- Diversifying export markets beyond the U.S. and EU to reduce vulnerability to protectionist measures.
- Deepening integration into global value chains, especially in electronics, automotive, and chemicals.
- Leveraging trade agreements with the UAE and ASEAN for preferential access.
In conclusion, July 2025 reinforces India’s status as a resilient trade player, capable of expanding exports despite global headwinds. Services continue to play a stabilizing role, while merchandise growth in value-added sectors highlights structural strength. Sustained policy support, strategic diversification, and structural reforms will be essential to ensuring that India’s trade momentum translates into long-term economic strength.
