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India’s Exports Expected to Grow 6 Per Cent This Year

2025-09-19

Union Commerce Minister Piyush Goyal on Wednesday stated that India’s exports are expected to grow by around 6 per cent this year, ultimately concluding on a positive note.

“India’s exports would grow by around 6 per cent this year compared to the corresponding period last year. I believe we will end the year on a positive note,” Goyal said in Mumbai.

His remarks come amid concerns over the United States’ plan to impose a 50 per cent tariff on Indian goods, including a 25 per cent duty on imports linked to Russian oil.

In FY25, India’s exports reached a record $824.9 billion, up 6.01 per cent from $778.1 billion in the previous year. Outbound shipments rose 6.7 per cent year-on-year to $35.1 billion in August, despite steep US tariffs.

Goyal added that discussions on free trade agreements (FTAs) are advancing with several countries, while domestic consumption continues to support growth.

“With the European Union, we had productive discussions in the last round. Their agriculture and trade commissioners visited Delhi, and the talks made rapid progress. Another virtual or physical round may follow soon,” he said.

The EU, India’s largest trading bloc partner in goods, recorded bilateral trade of $137.5 billion in FY24, nearly a 90 per cent increase over the past decade. The bloc is seeking significant duty reductions on vehicles, medical devices, wine, spirits, and dairy products, while India is pressing for greater access for its textiles, pharmaceuticals, steel, and petroleum products, according to an EU official. Talks were held last week in New Delhi. Separately, the European Commission announced its new “strategic agenda,” covering security, trade, technology, space, and migration, while exploring the creation of an EU-India Security and Defence Partnership.

On India’s trade pact with the United Arab Emirates (UAE), Goyal described it as the fastest free trade agreement concluded globally. He noted that the UAE acts as a gateway to Africa, the Gulf, and Eastern Europe and remains a key trading partner.

“There is significant investment interest from the UAE into India. I am confident this partnership will strengthen further,” he said. He added, “India’s growing strength and the journey from a $4 trillion economy to a $30 trillion-plus economy during Amritkal show that India is the place to do business. The world wants to work closer with India.”

On employment, Goyal stated: “We have recently reported the lowest unemployment rate at 5.1 per cent. While some highlight unemployment concerns, companies such as Larsen & Toubro have informed me they struggle to complete projects on time due to labour shortages. Even L&T’s IT subsidiary is actively seeking staff.”

The latest Periodic Labour Force Survey (PLFS) data indicates a declining jobless rate, supported by the start of the sowing season following a stronger-than-normal monsoon.

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