Piyush Goyal speaks at the Swissmem Industry Day in Bern, Switzerland on June 10, 2025.
| Photo Credit: AP
“The world trade is facing severe geo-political challenges, but India has consistently emerged as a winner in such times, and the country’s exports of goods and services will certainly cross $825 billion in 2025-26,” Commerce and Industry Minister Piyush Goyal said.
Despite global economic uncertainties due to the Russia-Ukraine conflict, Israel-Hamas war and the Red Sea crisis, the country’s overall exports touched an all-time high of $825 billion against $778 billion in 2023-24.
“As per estimates of certain multi-lateral bodies, there would be a contraction in global trade,” Mr. Goyal said.
“The world is going through severe geo-political challenges… So these are challenging times, but India has always emerged [as] a winner in challenging times and we did a record $825 billion exports in 2024-25. This year, we hope to do much better,” he told PTI.
When asked if last fiscal’s figures will be crossed, he said, “We will certainly be able to cross that”.
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Apex exporters’ body Federation of Indian Export Organisations (FIEO) has projected that the country’s overall goods and services exports are expected to grow by over 21% year-on-year to $1 trillion during 2025-26. FIEO president S.C. Ralhan has said the healthy growth may come on account of international buyers seeking to diversify their sourcing in the wake of global economic uncertainties.
In 2025-26, merchandise exports are expected to grow 12% to $525-535 billion from $437 billion in 2024-25, while services exports are likely to rise by about 20% year-on-year to $465-475 billion from $387 billion in the last fiscal, according to FIEO.
The major sectors that are expected to show a significant jump in the shipments this fiscal include electronics, engineering, chemicals, textile and clothing, pharma and even the agriculture sector.
Free trade agreements (FTAs) with countries such as the UAE, Australia and European Free Trade Association (EFTA) will also help boost exports in the coming months.
The India-EFTA trade agreement is expected to come into force from October 1 this year.
Mr. Goyal also said that FTAs signed during the Congress era were not good and have impacted domestic firms.
They signed FTAs with countries like ASEAN, which are India’s competitors; besides, they were not balanced, he said, adding that India opened more markets for those countries and “we did not get” good deals in return.
On finished goods, he said, India removed the duties but import taxes on raw materials created inverted duty issues and that hurt “us a lot”, he said.
He added that now the Modi government is doing FTAs with developed countries/regions like Australia, the U.K., EFTA, the E.U., the UAE, Oman, Peru, and Chile.
“Here we collaborate, there is no competition…so we are doing FTAs with well thought out strategies,” Mr. Goyal said.
India-EFTA signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.
Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties.
When asked if India would have to ease certain regulations to attract this investment, Mr. Goyal said it has been a commitment based on today’s situation.
“Prime Minister Narendra Modi is continuously focusing on ease of doing business, deregulation, reducing compliance burden, decriminalising the laws, making it attractive to do business in India,” he said, adding that ” I think this $100 billion will be exceeded and come faster”.
Published – June 11, 2025 12:30 pm IST
