India Aiming For $1 Trillion Exports In FY25, Hoping For US Mini Trade Deal Next Month: FIEO

India is targeting a major leap in its exports this year, with expectations to touch the $1 trillion mark from the current $825-billion mark, driven by growth in both goods and services, Federation of Indian Export Organisations President SC Ralhan told NDTV Profit in an interview.

“We are eyeing 12% growth in merchandise exports and 20% in services exports this financial year,” Ralhan said, adding that early trends suggest a turnaround after a sluggish start. “Order books have started filling up again after a slow 1-2 month phase. Exporters are feeling confident.”

A major catalyst, according to Ralhan, could be the India-US Bilateral Trade Agreement, expected to be signed as early as next month. “We are hopeful of a zero-tariff regime under the BTA. Even if tariffs stay at 10%, that’s still a win for us. Indian exporters will be comfortable operating under that structure,” he said.

Asked about the impact of easing trade tensions between the US and China, Ralhan pointed out that Indian exporters are already seeing benefits. “China still faces about 75% tariffs in some categories like auto components. India has only 25%, and that’s making us more competitive. Orders are starting to flow in.”

On the domestic front, Ralhan acknowledged exporters face lingering challenges, including logistical costs and credit access. However, recent steps like the RoDTEP benefits and the anticipated Interest Subvention Scheme have provided much-needed relief. “These are positive signals. The future looks good,” he said.

Regarding the recent rise in Covid cases, Ralhan said it’s “too early to comment,” but added that India is “taking all necessary precautions” and there’s “nothing serious at the moment” on the export front.