India’s total exports saw a 7.2% year-on-year (YoY) growth from April 2024 to January 2025, according to data from the Ministry of Commerce and Industry. This represents a notable rise in India’s global trade involvement, fueled by important sectors like electronics manufacturing and aerospace. Nevertheless, the possibility of U.S. tariffs presents a challenge to maintaining this progress.
What Is Driving India’s Export Growth?
One of the major contributors to India’s export rise is electronics manufacturing. Companies like Dixon Technologies, which assembles Google’s Pixel smartphones, have played a crucial role. Dixon reported over ₹285.77 billion in revenue for the nine months ending December 31, showing strong growth from the ₹177.13 billion ($2.04 billion) it earned in the previous fiscal year ending March 2024. The Indian electronics sector is expected to expand from ₹1.46 trillion in 2022 to ₹6 trillion by fiscal 2027, making it a key driver of export growth.
Another factor boosting exports is India’s aerospace industry. With global supply chain challenges affecting Western nations, companies like Airbus and Rolls-Royce have increased their sourcing of components from Indian firms. Bengaluru-based Hical Technologies and JJG Aero have benefited significantly, with Hical targeting a doubling of its aerospace revenue to $57.57 million within three years. The Asia-Pacific aerospace market is expected to be 54% larger in 2024 than in 2019, positioning India as a major supplier.
What Is the Government’s Export Target for FY 2025?
The Indian government has set an ambitious target to exceed $800 billion in total exports by the end of March 2025. This aim underscores a strategic focus on increasing exports in sectors with high demand while managing potential trade risks. By strengthening bilateral trade ties, enhancing production capabilities, and diversifying export markets, India intends to bolster its standing in global trade.
