Economic Survey: Strategic Trade Roadmap to Boost Vibrant Export Sector

Presented in Parliament on Friday as a precursor to the Union Budget 2025-26, the Survey highlighted India’s external sector resilience amidst global challenges.

The dynamic global trade environment, characterized by a gradual shift toward greater protectionism, necessitates an analysis of the current scenario and the formulation of a forward-looking strategic trade vision, the Economic Survey 2024-25 stated.

Presented in Parliament on Friday as a precursor to the Union Budget 2025-26, the Survey highlighted India’s external sector resilience amidst global challenges.

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Total exports (merchandise and services) saw steady growth during the first nine months of FY25, reaching $602.6 billion, reflecting a 6% increase.

Exports of services and products, excluding petroleum and gems and jewels, rose by 10.4%. Imports also increased to $682.2 billion for the same period, driven by steady domestic demand, marking a 6.9% growth in overall imports. The Survey suggests that by adapting to these trends and leveraging its strengths, India can achieve rapid growth and further enhance its presence in global trade.

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To bolster its competitiveness and deepen integration into global supply chains, the country should focus on reducing trade-related costs and enhancing export facilitation. This proactive approach will help India continue thriving in an ever-evolving global market, according to the Survey tabled by Finance Minister Nirmala Sitharaman.

On the capital front, foreign portfolio investments (FPIs) have shown mixed trends in FY25 so far. Uncertainty in global markets and profit-taking by foreign investors led to capital outflows. However, strong macroeconomic fundamentals, a favorable business environment, and high economic growth kept FPI flows positive overall.

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Gross foreign direct investment (FDI) inflows have picked up in the first eight months of FY25. However, net FDI inflows declined compared to April-November 2023 due to an increase in repatriation and disinvestment, the Survey noted. India’s foreign exchange reserves have increased to $640.3 billion by the end of December 2024, providing about 90% coverage for the country’s external debt of approximately $711.8 billion as of September 2024. This signals a strong buffer against external vulnerabilities, according to the Survey.

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