India’s Total Exports Hit $824.9 Billion in FY 2024–25: RBI
India’s total exports grew by 6.01% in FY 2024–25, reaching an all-time high of $824.9 billion, as per the RBI’s latest data. This includes both merchandise and services exports, compared to $778.1 billion in the previous year.
Let’s break down the numbers, key reasons, and policy insights in a simple format.
Export Growth Breakdown (FY 2023–24 vs 2024–25)
| Type of Export | FY 2023–24 | FY 2024–25 | % Change |
|---|---|---|---|
| Merchandise Exports | $437.1 billion | $437.1 billion | 0% |
| Services Exports | $341.0 billion | $387.8 billion | +13.74% |
| Total Exports | $778.1 billion | $824.9 billion | +6.01% |
Key Insight: The entire growth came from services exports, while merchandise exports stayed flat.
What’s Driving Services Export Boom?
- IT and software services demand from the US and Europe remained strong.
- Consulting, fintech, and design exports saw sharp growth.
- Remote work and global freelancing supported skilled Indian service providers.
- Government support via SEZ and RoDTEP schemes enhanced competitiveness.
Policy & Tax Implications for Exporters
1. GST Refunds on Exports
- Exports are zero-rated under GST.
- Exporters can claim Input Tax Credit (ITC) refunds or export without payment of tax under LUT.
2. Income Tax Benefit
- Under Section 10AA, units in SEZs can claim profit-linked deduction (up to 15 years)
- Foreign income from services may also qualify for DTAA benefits (Double Tax Avoidance Agreement)
3. Trade Facilitation
- DGFT simplified e-IEC registration.
- CBIC continues to streamline ICEGATE portal for faster customs clearance.
Expert View
“India’s services export resilience is a strong buffer against merchandise volatility. But it also means tax compliance, refunds, and export declarations must be digitally watertight.”
What Exporters Should Watch in FY 2025–26
- Rupee appreciation risk: Could make exports costlier
- Geopolitical tensions: Disruptions in Europe and the Red Sea may affect shipping
- AI disruption in IT services: Requires upskilling and innovation
- Tighter US/UK visa rules: May affect on-site service delivery
Actionable Steps for Indian Exporters
- File LUT on time to avoid paying IGST on exports
- Maintain records for GST refunds and IT scrutiny
- Track SEZ benefits under Section 10AA
- Regularly check DGFT and CBIC circulars
FAQ Section
Q1: Are services exports also GST exempt?
Yes, services exported out of India are zero-rated under GST.
Q2: Can freelancers qualify as service exporters?
Yes, if they receive foreign currency for services and comply with FEMA/GST rules.
Q3: Is PAN mandatory for exports?
Yes. PAN and IEC (Import Export Code) are mandatory for exports.
Q4: What if IGST is paid on exports?
You can claim IGST refund via GSTR-1 and shipping bill integration on ICEGATE.
India’s exports rose to $824.9 billion in FY 2024–25, driven entirely by a 13.74% surge in services exports, as per RBI. While merchandise trade remained flat, robust global demand for IT and consulting services pushed overall growth. Exporters should focus on compliance, GST refunds, and SEZ benefits under Section 10AA.