India's October Exports Reach New Monthly High On Christmas Demand, Set To Cross $800 Billion Target For FY25

India's goods exports rose by 17.25 per cent in October to reach $39.2 billion, achieving the highest monthly figure in recent history. However, the import bill also hit a new peak of $66.34 billion, a 3.9 per cent increase compared to October last year.

This resulted in the widening of the merchandise trade deficit which rose from $20.8 billion in September (a five-month low) to $27.14 billion in October, The Hindu reported.

From April to October, non-petroleum exports reached a record $211.3 billion. If this growth trajectory continues, India's total exports—including services—are on track to exceed $800 billion this year, setting a new milestone, according to Commerce Secretary Sunil Barthwal.

Notably, Union Commerce and Industry Ministry Piyush Goyal had set a target of exports of over $800 billion in FY25. In the last fiscal, India's exports were worth $778.2 billion.

The government official believed that the strategy of focusing on certain sectors and countries is now yielding results. He also credits schemes like the Production Linked Incentives (PLI) for increasing manufacturing competitiveness.

The approach to industrial policy, trade policy and foreign policy has changed under the Narendra Modi government. Due to this, the Indian exporters have done well in several sectors despite the global situation being highly volatile.

Barthwal acknowledged that UNCTAD and the World Trade Organisation (WTO) projections for this year are very pessimistic but expressed hope citing healthy double-digit growth in engineering goods, chemicals, electronics, rice, and labour-intensive sectors like readymade garments and textiles.

"A key factor for the 17 per cent-plus growth in exports could be improved demand for this Christmas from developed markets as firms start stocking up inventories for the festival. This demand seems far better than last year and gives us confidence that the coming months will also see a healthy uptick," he said.