Exports

India’s merchandise exports rose to USD 38.5 billion in December, signaling a gradual recovery in external trade amid a challenging global environment. The improvement reflects better performance across select manufacturing and engineering segments, supported by stabilizing global demand and improved supply-chain conditions. Trade experts note that while geopolitical uncertainties and uneven growth in major economies continue to pose risks, India’s diversified export base is providing resilience.

India’s automotive and metal export sectors are facing renewed pressure after Mexico imposed higher tariffs on key imported goods, a move rooted in the country’s evolving trade strategy and efforts to protect its domestic manufacturing base. The revised tariff structure affects several categories where India has traditionally maintained strong export momentum, including automobiles, auto components, steel, and aluminum products. As exporters analyze the financial implications, the sector is bracing for potential cost escalations, reduced margins, and a possible shift in trade flows.

Sber, Russia’s largest lender, has unveiled a rupee-denominated letter of credit designed to streamline payments for Indian suppliers exporting goods to Russian buyers. The new facility enables Indian exporters to receive prompt payment in Indian rupees once shipping documents are submitted, while Russian importers are granted deferred-payment terms that ease their cash-flow cycles. By reducing foreign-exchange exposure and providing a stable settlement framework, the initiative is expected to strengthen trade confidence and broaden commercial ties between the two countries.

Union Commerce and Industry Minister Piyush Goyal has announced a strategic plan to enhance the global presence of India’s tribal products, positioning them as key contributors to the country’s export growth. The initiative aims to empower tribal artisans and entrepreneurs by integrating them into mainstream trade networks and expanding their access to international markets.

The Indian government is considering a calibrated relaxation of the ongoing sugar export restrictions for the 2024–25 season to manage rising domestic stock levels and ensure timely payments to sugarcane farmers. The move, if approved, could allow mills to ship a limited quantity of sugar under strict monitoring to prevent domestic price volatility. Policymakers are assessing production forecasts, ethanol diversion targets, and global market dynamics before taking a final call.

India is consolidating its position as a global hub for services exports, driven by IT, business process outsourcing (BPO), financial services, and emerging digital solutions. According to a recent report by the National Stock Exchange (NSE), the country’s services sector continues to outperform peers in terms of revenue growth, talent scalability, and technological innovation. Rising global demand for cloud computing, fintech solutions, and knowledge-driven services has reinforced India’s competitiveness.

The Indian government has announced the extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until March 2026, providing continued relief to exporters grappling with global uncertainties and competitive pressures. The program, which reimburses embedded taxes and duties not refunded through other mechanisms, is designed to enhance the cost competitiveness of Indian goods in international markets.