Agri-trade mixed bag

India's Trade Story Is Promising, Agriculture Presents Both Challenges & Opportunities

- ASHOK GULATI RITIKA JUNEJA

NAYEAR marked by shifting tariffs by the Trump administration and global geopolitical tensions, India's trade performance faces many challenges. While the India-UK free trade agreement (FTA) has been concluded, the bilateral trade agreement (BTA) with the US is still under negotiation. Meanwhile, it would be interesting to review and reflect on India's FY25 trade performance.

India's total exports, comprising goods and services, rose to $820.93 billion in FY25, marking a 6.5% increase over FY24. Merchandise accounted for $437.42 billion (53%), while services, powered by India's global edge in IT, finance, and business solutions, contributed $383.51 billion (47%). Imports, however, grew faster at 6.85%, reaching $915.19 billion. Merchandise made up the lion's share (79%) of imports with $720.24 billion, while services added $194.95 billion (21%). This pushed the trade deficit to $94.26 billion, from $78.39 billion in FY24. With the International Monetary Fund pegging India's nominal GDP at $4.19 trillion in FY25, the trade-to-GDP ratio stands at a robust 41.4%—reflecting deeper ties with global markets.