Trade agreements with US, EU to be concluded soon, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday praised the perseverance and resilience of Indian exporters, noting their achievement in crossing a historic export barrier of $825 billion during 2024–25, under an adverse global trade environment.

Addressing the Exim Bank Trade Conclave 2025, Sitharaman underlined the toughness of India's export industry, which was able to increase by 6% in the last year despite global exports increasing by merely 4%.

"India's overall exports stood at an all-time high of $825 billion, registering 6 per cent growth from last year and notably, $466 billion above 2013-14. As against the world's exports having grown just 4 per cent. India's export ers were able to accelerate and breach 6.3 per cent," she said in her speech.

Noting the wider economic context, Sitharaman added that world trade growth has been weak over the past few years. Referencing the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO) estimates, she stated: "The world is not in the mood to go along with exports—even after this, Indian exporters have shown resilience and grown despite the setbacks in global exports."

The Finance Minister hailed Indian exporters for their product diversification and ability to adjust according to evolving market dynamics. She referred to increasing proportion of technologically advanced and value-added products in India's export basket—especially compared to the bulk commodity exports that used to be the hallmark earlier.

"India is not only shipping bulk commodities but also well-engineered, high-quality products," she added, pointing out that exporters have been able to spot and tap new markets even in the midst of reducing consumption in countries such as Europe.

Sitharaman also referred to the ongoing negotiations for free trade agreements (FTAs) with major partners. She stressed that these agreements are likely to redefine India's export scenario in the near term.

"Excruciating trade negotiations are in progress with the US and the European Union and should reach their end soon. Focus is being laid on increasing the number of free trade agreements getting signed," she said, being optimistic for future deals.

To aid the export community, Sitharaman enumerated five key initiatives taken by the government:

Transport and Logistics Infrastructure: To increase connectivity and lower costs for exporters.
Support for MSMEs: Targeted assistance to small and medium-sized enterprises involved in exports.
Technological Support: Support for R&D centres like IITs and IIMs for driving innovation in export-oriented sectors.
GIFT City Initiatives: Introduction of the International Trade Finance Services platform at GIFT City to facilitate access to international financial markets.
Production Linked Incentive (PLI) Schemes: Promoting local manufacturing, particularly in areas such as electronics and smartphones, which have experienced major export surges.

Also, Sitharaman countered criticism in international circles against India's import tariff structure. She explained that the Union Budget of this year had eliminated seven various tariff rates, indicating that India was looking to rationalize its trade policies.

Reiterating the government’s commitment, she assured exporters of continued support to help them thrive amid global uncertainties. “Indian exporters have not only survived but grown through creativity and adaptability,” she added.