India’s exports in Q1 show resilience despite global slowdown: CRISIL

India’s exports have shown resilience amidst global challenges, with merchandise exports rising by 5.8% to $109.96 billion in the first quarter of fiscal 2025, according to CRISIL.

Despite a slowdown in growth in June, non-oil exports maintained momentum at 7.7%. However, a significant 18.2% contraction in oil exports contributed to a widening merchandise trade deficit to $21 billion.

“On a cumulative basis, merchandise exports rose 5.8% to $109.96 billion for the first quarter of fiscal 2025, from $103.9 billion in the year-ago period. This growth in exports in the first quarter of fiscal 2025 suggests that India has managed to keep its exports resilient in the wake of the ongoing conflict in Europe and the Middle East,” CRISIL said.

According to CRISIL, while India’s fiscal year began positively with merchandise exports showing growth in the first quarter, the widening trade deficit due to higher import growth remains a concern. The government’s emphasis on foreign-trade agreements (FTAs) is anticipated to boost exports, although challenges such as potential dumping from China following US tariff hikes loom.