India targets record export growth in 2025 amid global challenges : Piyush Goyal
NEW DELHI : Commerce and Industry Minister Shri Piyush Goyal said that, despite a volatile global environment, India is on track to clock record-high exports this year. He said this in a recent interview that, India’s total exports could exceed $870 billion in 2025, up from a record $825 billion in 2024–25.
“Our focus is more and more on value-added and labour-intensive goods and services exports,” he said. While goods exports are expected to grow by 5–6 percent, services may see a stronger 9–10 percent jump, Goyal said, citing resilient demand and growing competitiveness across sectors like electronics, engineering, and pharmaceuticals. FTAs with UAE, Australia yielding strong gains
FTAs with UAE, Australia yielding strong gains
Goyal highlighted how recent free trade agreements (FTAs) are reshaping India’s global trade presence. India has signed FTAs with the UAE, Australia, EFTA, and the UK.
“With the UAE, services exports have almost doubled in the last four-five years. In Australia, it has nearly tripled,” Goyal told TOI. “In Australia’s case at 25 percent, we have crossed $8 billion, while we were tottering at $3 billion earlier.”
However, he criticised FTAs signed during the UPA regime as imbalanced. “Services export to Japan is slowing down. We did not get very wide coverage in areas of interest for India,” he said, expressing hope for a review with ASEAN, Japan, and South Korea. “Japan has not agreed to it and a South Korea review is underway.”
India cautious on China, stands by RCEP exit
India’s trade engagement with China remains cautious. Defending India’s 2019 decision to stay out of the China-dominated RCEP, Goyal said it was “nothing but an FTA between India and China” since India already had agreements with other member countries.
“PM Modi showed decisive leadership and sensitivities for our fishermen, farmers, industry and entrepreneurs,” he said, adding that only three out of 200 stakeholders consulted supported joining the pact.
Goyal also flagged concerns about transshipment of Chinese goods through ASEAN countries and stressed India is actively working to curb substandard imports and protect domestic industry.
Trade deficit with China ‘more controlled under Modi govt’
While India’s trade deficit with China nears $100 billion, Goyal said the growth has slowed compared to the UPA years.
“During the 10 years of UPA rule, the trade deficit with China grew nearly 25 times. Between 2014–15 and 2023–24 it has only expanded 1.75 times,” he said.
He noted that many Chinese imports are raw materials or capital goods used in domestic manufacturing. “There is also a corresponding increase in exports,” Goyal added.
India a top choice for China+1 investors
Amid global efforts to de-risk from China, Goyal said India has emerged as a preferred destination for investment.
“India is a much sought after destination for investments,” he said, highlighting progress in sectors like shipbuilding and semiconductors. “Domestic value addition has increased significantly in PLI-supported sectors.”
Industrial parks, SEZ rule changes on the way
India is also pushing ahead with new industrial infrastructure. Goyal said ground work for 12 new industrial corridor projects is set to begin by October or November this year.
“Dholera is emerging as a semiconductor hub, while Shendra-Bidkin in Maharashtra is growing into an automotive and EV centre,” he said.
Of the 4,200 acres developed in industrial zones like Dholera, Shendra-Bidkin, Vikram Udyogpuri, and Greater Noida, 76 percent is already under committed use.
The government also plans to launch 100 new industrial parks with plug-and-play infrastructure and a single-window system for approvals.
QCOs and SEZ reforms to support ‘Zero Defect, Zero Effect’ vision
Goyal said quality control orders (QCOs) are being enforced to curb substandard imports and encourage high-quality domestic production.
“Technical regulations have been strengthened to promote a strong quality ecosystem in India… It acts as a nudge to produce quality products in India,” he told TOI.
On SEZ rules, he said reforms are being finalised to improve capacity utilisation and reduce FTA dependency.
Private capex, rural demand show signs of recovery
While acknowledging signs of a global slowdown in Q1, Goyal pointed to improving rural demand and robust investment in sectors like steel, auto parts, and cement.
“You may see a jump in growth in the second half of the year. I see no difficulty in closing the year with RBI’s 6.5% growth, which will make us the fastest growing economy,” he said.
Goyal also noted that India’s outward investment is building global assets and long-term economic strength.