Intro:
Engineering and pharma boost goods exports in FY25 as India navigates global headwinds. Despite tepid global demand, sectors like electronics, agri, textiles, and chemicals have helped cushion the impact. This blog breaks down key drivers, sector trends, and government policy angles you need to know.
What’s Keeping India’s Exports Afloat in FY25?
The global trade landscape in FY25 has been rough — weak Western demand, high freight rates, and geopolitical tensions. Yet, Indian exports showed surprising resilience.
Key Export Drivers (April 2024 – February 2025)
| Sector | Growth Trend | Comments |
|---|---|---|
| Engineering | Strong recovery | Capital goods, auto components rising |
| Electronics | Moderate growth | Mobile phones, components drive gains |
| Agriculture | Stable | Basmati rice, spices in demand |
| Pharmaceuticals | Robust performance | US and Africa market gains |
| Textiles | Recovering slowly | Orders from EU return post-Q3 |
Source: Ministry of Commerce – commerce.gov.in
Sector-Wise Deep Dive
Engineering Sector Leads Export Momentum
- Includes iron, steel, industrial machinery, and auto parts
- Government’s PLI Scheme and FTAs with UAE, Australia helped
- Engineering exports touched $91 billion as of Feb 2025
Pharma Remains India’s Global Strength
- Indian drug exports to the US rose by 8.5%
- API production under “Make in India” got a boost
- WHO pre-qualification for Indian vaccines aided African exports
Agriculture Holds the Line
- Basmati rice exports stayed strong despite Iran slowdown
- Tea, spices, and processed food demand rose in ASEAN
Textiles & Apparel: Slow but Steady Comeback
- FY25 Q3-Q4 saw recovery in Western orders (EU, US)
- Focus on MMF and technical textiles under National Textile Policy
- ROSCTL benefits extended till March 2026
Electronics: Mobile & Component Exporters Rise
- Mobile phones accounted for over ₹1.2 lakh crore in exports
- India became the second-largest mobile exporter globally
- Backed by:
- PLI Scheme for Mobile Manufacturing
- Apple, Samsung expanding local sourcing
Key Government Support Measures
- RoDTEP Extension: Rebate on duties, taxes on exported goods
- Export Credit Insurance Scheme: Easier working capital for MSME exporters
- FTAs: Quick implementation of trade pacts with the UK, Oman, and Canada (in progress)
Expert View: India’s Quiet Resilience
“While big economies like Germany and Japan shrink exports, India’s diversified base is a strength. Engineering and pharma have become our frontline defence against global trade shocks.”
– Ajay Sahai, DGFT Expert Panel
Is FY26 Looking Better?
Yes, early signs suggest:
- Crude price softening
- Improved container availability
- INR stability improves cost advantage
Tip for Exporters
If you’re an Indian MSME or business owner planning to start exports in FY25–26:
✅ Register with DGFT
✅ Opt for LUT under GST to export without IGST payment
✅ Use ICEGATE for customs filing and refund tracking
✅ Consider RoDTEP/ROSCTL benefits in your cost sheet
FAQ: Export Trends FY25
Q1. Which sector led India’s exports in FY25?
Engineering and pharma led with high-value shipments.
Q2. What helped electronics exports?
PLI schemes and mobile phone production scaled up.
Q3. Is textile export demand improving?
Yes, especially post-Q3 with EU demand rising again.
Summary
India’s goods exports stayed resilient in FY25, thanks to strong performance in engineering, pharma, and electronics sectors. With government support through RoDTEP, FTAs, and credit schemes, MSMEs continued to export competitively despite global headwinds.