India’s April–May 2025 Export Surge Led by Services, Electronics & Pharma: Trade Deficit Widens Slightly

India’s export economy continues to show resilience in the face of global uncertainty. The combined exports of merchandise and services for April–May 2025 stood at ₹12.23 lakh crore (US$ 142.43 billion) — marking a 5.75% growth over the same period last year, according to fresh data released by the Ministry of Commerce.

The growth was fueled primarily by strong service sector performance and an impressive rise in exports of electronic goods, pharmaceuticals, and marine products. However, rising imports caused a slight widening in the trade deficit.

India’s Export-Import Snapshot: April–May 2025

₹12,23,900 crore (US$ 142.43 billion)
Up 5.75% YoY

₹6,63,293 crore (US$ 77.19 billion) Up 3.07%

₹5,60,607 crore (US$ 65.24 billion)
Up 9.11% — continues to outperform goods

₹13,71,185 crore (US$ 159.57 billion) Up 6.52% YoY
₹1,47,284 crore (US$ 17.14 billion) Widened from ₹1,29,926 crore (April–May 2024)

May 2025 Monthly Highlights

₹3,32,806 crore (US$ 38.73 billion) Slight dip due to softening demand in metals and textiles
₹2,78,327 crore (US$ 32.39 billion) Up from ₹2,54,438 crore in May 2024

Fastest-Growing Export Categories

54.10% YoY — driven by global demand and domestic manufacturing push (PLI schemes)
26.79% — strong performance in frozen shrimp and aquaculture
7.38% — consistent exports to the US, EU, and Latin America
₹5,52,100 crore (US$ 64.25 billion) 7.53%

Top Export Destinations: Strong Growth

21.78% — led by IT services, electronics, and generics
50.76% — strong demand in industrial goods and tech
18.75% — notable recovery in trade flow

Import Highlights

Key Trends & Takeaways for Logistics Stakeholders

Final Word

India’s strong start to FY 2025–26 sends a positive signal, but widening trade deficits and global uncertainties underline the need for strategic logistics and sourcing decisions. Stakeholders in freight forwarding, warehousing, and cross-border trade must keep a close eye on changing trade lanes and government policy shifts.

India Moves to 15th Spot in Global FDI Rankings

New Delhi – India has moved up one spot to become the 15th largest destination for foreign direct investment (FDI) globally in 2024, according to the World Investment Report 2025 published by the United Nations Conference on Trade and Development (UNCTAD). This jump comes despite a modest 1.9% dip in inflows, which stood at $27.6 billion compared to $28.1 billion in 2023.
“India remained the dominant FDI destination in South Asia, accounting for the vast majority of inflows in the subregion,” the report noted.
While global FDI slipped 11% to $1.5 trillion in 2024, India’s consistent performance signals enduring investor confidence—especially in manufacturing and digital infrastructure.

Key Highlights:

India ranks 15th globally in FDI inflows (2024), up from 16th in 2023 FDI inflow: $27.6 billion, down 1.9% YoY
India continues to dominate South Asia’s FDI landscape, with the region receiving $24.1 billion overall
India ranked 4th globally in greenfield project announcements in 2024, with 1,080 projects Also among top 5 countries securing international project finance (97 deals)
India attracted the most greenfield digital economy investments in the Global South (2020–2024), totaling $54 billion
This sector is growing 10–12% annually—outpacing global GDP growth
India climbed to 18th in FDI outflows, with $23.8 billion in overseas investments
Four of the 10 largest global megaprojects were in semiconductors—including one in India
Basic metals and electronics projects boosted India’s manufacturing rise

Global Context:

Editor’s Note:

India’s rise in the UNCTAD rankings—paired with a booming digital and greenfield investment footprint—signals a clear trend: India is increasingly being seen as a resilient and attractive destination for strategic long-term capital, especially in logistics, tech, and core manufacturing.
With government initiatives like ‘Make in India’, the PLI schemes, and Gati Shakti infrastructure push, the country is not just attracting funds—it’s cementing itself as a global manufacturing and logistics powerhouse for the future.

India Emerges as a Rising Powerhouse for Data Centres & Chip Manufacturing

Amid rising global trade tensions and a slowdown in cross-border investments, India is carving out a critical role in the global tech and logistics landscape — fast becoming a key hub for data centre infrastructure and semiconductor manufacturing, according to the latest Moody’s Analytics report, AI Is Beating the Odds.
The report reveals a surprising trend: despite macroeconomic uncertainties, capital investment in AI-related infrastructure is not just holding steady — it’s accelerating. This growth is primarily driven by the need to bridge the widening gap between exploding AI demand and the limited global supply chain capacity.

Key Highlights from Moody’s Report:

Logistics & Industrial Impact:

The Bigger Picture:

As artificial intelligence reshapes industries, nations that can support the physical backbone — data infrastructure, chip production, and supply chain logistics — are quickly rising to prominence. India’s positioning at this intersection of tech and logistics puts it on track to become a global hub for digital infrastructure in the coming decade.

India’s Exports Surge Ahead: Fastest-Growing Among Major Economies, Says UNCTAD

India’s export story continues to shine on the global stage. According to the UNCTAD Key Statistics and Trends in International Trade 2024, India recorded the highest export growth rate among major economies from 2010 to 2023—an impressive 6.3% increase in its share of global exports.
This strong performance underscores the resilience and adaptability of India’s trade ecosystem, powered by its robust policy framework, export diversification, and expanding role in global value chains.
“India’s consistent export growth reflects the dynamism of its trade sector and the success of strategic initiatives in manufacturing and services,” a government official said.

Key Highlights at a Glance:

Growth fueled by:

What This Means for Indian Logistics & Trade:

India’s steady rise in export rankings is a positive signal for freight forwarders, NVOCCs, port operators, and global buyers. With policy support and improving infrastructure, India is poised to become an even more influential trade hub in the coming decade.

India’s Services Sector Hits 3-Month High in May, But Manufacturing Loses Steam

India’s services sector saw its fastest growth in three months this May, thanks to robust export demand and record employment gains, keeping the economy’s expansion momentum alive.

Key Highlights:

The HSBC India Services PMI (seasonally adjusted) rose to 58.8 in May, up from 58.7 in April — well above the 50-mark, signaling sustained sector expansion.
Companies ramped up hiring at the fastest pace on record to meet rising demand and export orders.
Strong overseas demand remains a critical growth engine for India’s services industry.
Both input costs and output charges climbed above historical averages, hinting at inflationary pressures.
RBI expects 6.5% GDP growth this fiscal, supported by rural demand, public investments, and services exports.

Manufacturing Sector Shows Signs of Cooling:

Logistics & Freight Takeaway:

India’s GDP Surges 7.4% in Q4 FY25, Beats RBI Forecast — Construction & Services Lead Growth

India’s economy ended FY25 on a strong note, with GDP growth outpacing expectations in the January–March quarter. According to the National Statistics Office (NSO), Q4 GDP clocked 7.4% growth, higher than the Reserve Bank of India’s (RBI) forecast of 7.2%.

For the full fiscal year 2024-25, GDP expanded 6.5%, just shy of RBI’s earlier estimate of 6.6%.

Key Highlights: At a Glance

Q4 GDP Performance:

Full-Year Growth:

Nominal GDP Expansion:

Top Performing Sectors:

Agriculture Rebounds:

Healthy Investment & Consumption::

Quarter-wise GDP Trend (FY25)

Quarter

GDP Growth (%)

Q1 FY25

6.70%

Q2 FY25

5.4% (7-quarter low)

Q3 FY25

6.2% (Rebound begins)

Q4 FY25

7.4% (Strong finish to the fiscal year)

Looking Ahead:

India’s Q1 FY26 GDP figures will be announced on August 29, 2025 — a key indicator of whether this growth momentum will continue into the new fiscal cycle.

India Poised for 6.5% GDP Growth in FY26: CII

India’s economy is poised to grow at a healthy 6.5% in FY26, withstanding global geopolitical challenges, according to Sanjiv Puri,President of the Confederation of Indian Industry (CII).
In an interview with PTI, Puri highlighted the resilience of the Indian economy, crediting a strong macroeconomic foundation, improving private investment, and easing inflation as key growth enablers.
“We are looking at 6.5%. This number is achievable, fundamentally because we’re starting from a position of strength,” said Puri.
Growth Drivers: Investment, Reforms & Resilience
Private investment is gaining traction across core sectors such as energy, transportation, metals, chemicals, and hospitality, signaling growing economic confidence. Puri noted that despite geopolitical uncertainties, the investment environment remains optimistic, though some caution may persist.

Several recent policy moves are also contributing to momentum:

Trade in a Fragmenting World :

Addressing rising global protectionism and proposed tariff hikes by key economies like the US, Puri emphasized the urgency of bilateral trade pacts with strategic partners such as the US and EU.
“We must engage in trade agreements mutually beneficial and aligned with national interest,” he stated, advocating for a three-tier tariff structure to improve competitiveness in select sectors.

Focus on Domestic Strengths

Puri also stressed the importance of accelerating reforms in agriculture, climate adaptation, and domestic productivity to sustain long-term growth.
He pointed out encouraging signs from the rural economy, noting that while urban consumption has remained flat, it is expected to rebound in the coming quarters.

“The domestic drivers of growth must be our priority. They can buffer the economy against external volatility,” Puri said, adding that further interest rate cuts could further support growth.

S&P Global: India’s Manufacturing Sector Attracting Rising Global Investment

A new study by S&P Globaltitled “India Forward: Transformative Perspectives” highlights India’s rising appeal as a global manufacturing hub. As international trade dynamics shift, India is emerging as a key beneficiary. Here’s what the report reveals:

Key Highlights :

With a blend of policy reform, strategic location, and strong fundamentals, India is steadily becoming a preferred destination for global manufacturing investment. The road ahead looks promising for deeper integration into global value chains.

India Gears Up for Global EV Leadership with Bold Vision and Rapid Growth

India is shifting gears towards a cleaner, greener future, setting the stage to become a global leader in electric vehicles (EVs). With one of the world’s largest automotive markets and a fast-growing population, India is driving innovation and investment in EV technology at an unprecedented pace.
The nation’s EV market is on a high-voltage growth track—expected to surge from ₹27,417 crore (US$ 3.21 billion) in 2022 to a staggering ₹9,73,589 crore (US$ 113.99 billion) by 2029. Former NITI Aayog CEO and G20 Sherpa, Mr. Amitabh Kant, emphasized the urgency of transitioning to sustainable mobility, warning that delay could cost India its shot at becoming the world’s top EV manufacturer.
By 2030, India aims to have:
Government initiatives like the PM E-Drive scheme> are accelerating progress by offering incentives, infrastructure development, and industry partnerships. The government’s ‘7C Vision’ – Common, Connected, Convenient, Congestion-free, Charged, Clean, and Cutting-edge – is paving the way for affordable financing and a robust charging ecosystem.

Key Highlights: India’s EV Revolution

From ₹27,417 crore (2022) to ₹9,73,589 crore (2029) – a 35x increase in market value.
80 million EVs on Indian roads by 2030 with a 30% share in overall vehicle sales.
Projected to grow from ₹1,43,233 crore (2023) to ₹2,36,586 crore (2028).
PM E-Drive scheme, state incentives, and industry-government collaboration are accelerating EV adoption.
Over 12,000 public charging stations in operation; 1.32 million needed by 2030.

A strategic framework promoting sustainability, convenience, and innovation.

Tata Motors, Mahindra & Mahindra lead the charge, with strong support from JSW and Reliance Infrastructure.
EV penetration to hit 19% by 2030 and 32% by 2035.
Joint efforts in local manufacturing, battery R&D, and skill development are essential for long-term success.

With strong policy support, industry commitment, and an innovation-driven mindset, India is well on its way to becoming a global powerhouse in electric mobility—clean, connected, and future-ready.

UN Report: India Defies Global Slowdown with Robust 6.3% Growth in 2025

Despite a slight downward revision, India continues to hold its ground as one of the fastest-growing large economies in the world, according to the United Nations’ latest ‘World Economic Situation and Prospects: Mid-2025’ report released on Thursday.
The UN has scaled down India’s GDP growth forecast for 2025 to 6.3%, a dip from its earlier 7.1% projection for 2024. But the tone of the report remains optimistic — India’s growth story is far from losing steam.
“India remains one of the fastest-growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered,” said Ingo Pitterle, Senior Economic Affairs Officer at the UN DESA, during a press briefing.

What’s Fueling India’s Momentum?

India’s resilience is backed by robust domestic demand, aggressive government capital expenditure, and a thriving services sector, especially in IT and finance. These pillars are helping India power through a global environment riddled with uncertainty, from trade tensions and tariff wars to inflation and geopolitical shifts.
According to the report, while global supply chains are under pressure and many economies are slowing, India’s economy is defying the odds thanks to:

Long-Term Positives

India’s young population, digital innovation ecosystem, and ongoing policy reforms in manufacturing and infrastructure are cited as long-term strengths. The report sees these factors helping the country maintain a stable and upward economic trajectory, even as global headwinds persist.

The Big Picture

In a year when many economies are tightening belts, India is still expanding its footprint. While the 6.3% forecast is lower than earlier expectations, it still positions the country as a standout performer on the global economic stage.
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