India's Q1 2025 Trade Hits USD 441 Billion, Driven by Services and Key Sectors

India's trade resilience is evident in its growing services exports and strong performance in key sectors. To maintain competitiveness, the leather and footwear industry must empower MSMEs and focus on sustainable, design-driven value chains.

, and Administrator

2025 October 6 . 7:55 PM

1 min read

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India's Q1 2025 Trade Hits USD 441 Billion, Driven by Services and Key Sectors

India's trade has shown remarkable resilience, with total trade reaching USD 441 billion in Q1 2025, a 2.2% increase from the previous year. This growth is driven by a surge in services exports and a strong performance in key sectors like aerospace and high-value manufacturing.

India's exports to North America expanded by 25%, making it the fastest-growing market and accounting for nearly a quarter of India's total exports. Meanwhile, merchandise exports saw a slight contraction due to reduced shipments of mineral fuels and organic chemicals. However, electrical machinery, pharmaceuticals, and cereals exports registered robust gains.

The UAE overtook Russia as India's second-largest supplier, thanks to increased gold inflows under the Comprehensive Economic Partnership Agreement (CEPA). Imports from China also surged due to strong demand for electronics. Overall, imports rose marginally as demand grew for nuclear reactors, electrical machinery, and inorganic chemicals.

The leather and famous footwear industry, employing 4.4 million people, holds a 10-14% global share in processed leather exports but only a 1.8% share in the USD 296 billion global footwear market. To enhance competitiveness in this sector, India must empower MSMEs, boost R&D, and align with green, design-driven value chains.

India's trade resilience is evident in its growing services exports and strong performance in key sectors. As the trade composition evolves, India must continue to empower its industries to maintain competitiveness. For the leather and famous footwear sector, this means focusing on MSME empowerment, R&D, and sustainable, design-driven value chains.