Economic Survey: India’s external performance demonstrates resilience to global shocks

India’s external performance demonstrates resilience to global shocks and highlights the structural characteristics associated with a rapidly growing economy that is integrating more deeply into global markets, says the Economic Survey tabled in Parliament on Thursday by Finance Minister Nirmala Sitharaman.

The survey notes that the country’s steady rise as a key player in global trade is evident in its increasing share of both global merchandise exports and commercial services exports. According to the WTO’s World Trade Statistics, between 2005 and 2024, India’s share of global merchandise exports has nearly doubled, rising from 1 per cent to 1.8 per cent; similarly, its share in global commercial services exports has more than doubled, rising from 2 per cent to 4.3 per cent.

Advertisement

India has not only increased its share in global trade but has also diversified its partnerships and the range of products it trades. According to UNCTAD’s Trade and Development Report 2025, India ranked among the leading economies in trade partner diversification, ranking third in the Global South and recording a trade diversity score higher than all Global North economies. In terms of the merchandise trade diversity indicator, India ranks fourth in the Global South, following Thailand, China, and Turkey, with an index score of 0.88.

India’s total exports reached a record USD 825.3 billion in FY25, registering a 6.1 per cent year-on-year growth, driven primarily by robust growth in services exports which experienced a 13.6 per cent (YoY) increase. This export momentum continued into FY26, with Q1, Q2 and Q3 recording the highest-ever exports for the respective quarters despite global uncertainties.

In FY25, India’s merchandise exports totalled USD 437.7 billion, in which Non-petroleum exports reached a historic high of USD 374.3 billion. Electronics, pharmaceuticals, electrical machinery and automobiles emerged as key export growth drivers, reflecting rising competitiveness in higher-value manufacturing segments.

The survey highlights that exports of telecom instruments witnessed a significant growth of 51.2 per cent (YoY) while those of drug formulations and biologicals experienced a growth of 11.2 per cent (YoY) in FY25. These trends are a testament to the country’s increasing strength in electronic manufacturing and reaffirm its position as a global pharmaceutical hub.

Agricultural exports increased from USD 34.5 billion in FY20 to USD 51.1 billion in FY25, registering a CAGR of 8.2 per cent. The country has the potential to reach USD 100 billion in combined exports of agriculture, marine products and food and beverage in the next four years.