India’s $71 Billion Trade Push—Can It Overcome Global Uncertainty?

India is gearing up for a stronger export performance in the second half of 2025 as global trade conditions start to stabilize. After months of uncertainty due to geopolitical tensions and shifting economic policies, signs point to a more predictable trade environment, giving Indian exporters a boost.

 

In May 2025, India’s total exports—including goods and services—rose 2.8% year-on-year, hitting $71.12 billion. While merchandise exports saw a slight dip to $38.73 billion, sectors like engineering, garments, and chemicals helped cushion the impact. The trade deficit also narrowed to $21.9 billion, offering some relief.

 

Experts suggest that the steadying of crude oil prices, hovering around $75 per barrel, could help keep India’s current account deficit (CAD) within 1.2-1.3% of GDP for the upcoming fiscal year. Meanwhile, engineering exports have remained remarkably stable, with only a 0.8% decline, despite disruptions in Middle Eastern logistics.

 

Looking ahead, exporters are optimistic about global demand picking up. As trade restrictions ease and economic growth gains momentum, India’s export sector could see a much-needed revival, reinforcing its role as a major player in global trade.

 

Source: WebIndia123, SBI Capital Markets, The Hindu Business Line