India’s Merchandise Exports Projected to Rise 3.64% in Q4 FY25
India’s merchandise exports are expected to experience a significant surge in the fourth quarter of the current financial year (Q4 FY25), with a projected increase of 3.64% compared to the same period last year (Q4 FY24). According to Exim Bank’s estimate, India’s merchandise exports are expected to reach a staggering figure of $124.8 billion in Q4 FY25. This upward trend is expected to continue throughout the entire financial year, with a predicted growth rate of 2.2% YoY to $446.5 billion in FY25.
The Indian government has been actively working towards boosting the country’s exports, and these projections are a testament to the success of these efforts. In recent years, India has made significant strides in terms of its trade policies, infrastructure development, and investment in industries such as manufacturing and technology. These initiatives have helped to improve the country’s export competitiveness and attract more foreign investment.
One of the key drivers behind India’s expected export growth is the growth in demand from key markets such as the United States, Europe, and China. These regions have been experiencing a strong economic recovery, which has led to an increase in demand for Indian goods and services. Additionally, the ongoing trade tensions between the US and China have also benefited India, as companies are looking for alternative suppliers.
Another significant factor contributing to India’s export growth is the growth of the services sector. India has been a major player in the global services sector, with a strong focus on areas such as IT, ITES, and pharmaceuticals. The growth of the services sector has not only created new opportunities for Indian companies but has also helped to diversify the country’s export basket.
The growth of the manufacturing sector is also expected to play a crucial role in driving India’s export growth. The country has been actively promoting the growth of its manufacturing sector through initiatives such as the Make in India program, which aims to increase the share of manufacturing in India’s GDP. The program has been successful in attracting foreign investment and promoting the growth of various industries such as automotive, textiles, and pharmaceuticals.
The Indian government has also been working towards improving the country’s trade infrastructure, which is expected to support the growth of exports. The government has been investing heavily in the development of ports, airports, and other trade-related infrastructure. This has helped to reduce transportation costs and improve the efficiency of the trade supply chain.
In terms of specific sectors, the growth of India’s exports is expected to be driven by a range of industries, including:
- Textiles and apparel: India is one of the largest producers of textiles and apparel in the world, and the sector is expected to continue to grow in the coming years.
- Pharmaceuticals: India is a major player in the global pharmaceutical industry, and the sector is expected to continue to grow driven by the increasing demand for generic medicines.
- Automobiles: India is one of the fastest-growing automobile markets in the world, and the sector is expected to continue to grow driven by the increasing demand for cars and other vehicles.
- IT and ITES: India is a major player in the global IT sector, and the sector is expected to continue to grow driven by the increasing demand for software services and other IT-related services.
In conclusion, India’s merchandise exports are expected to rise significantly in the fourth quarter of the current financial year, driven by a range of factors including the growth of demand from key markets, the growth of the services sector, and the growth of the manufacturing sector. The Indian government’s initiatives to promote trade and investment, as well as its efforts to improve the country’s trade infrastructure, are also expected to support the growth of exports.
