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India's Agricultural Trade Surplus Shrinks as Imports Surge in FY25

Exports rose modestly by 6.3% to $52 billion, but a sharp 16.5% increase in imports to $38.2 billion highlights growing challenges for India's agricultural sector.

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Overview

  • India's agricultural trade surplus dropped to $13.8 billion in FY25, down from $27.7 billion in FY14, reflecting slower export growth and rising imports.
  • Agricultural exports grew 6.3% to $52 billion, with rice leading the export basket at $12.5 billion, accounting for nearly one-fourth of total agri-exports.
  • Imports surged by 16.5% to $38.2 billion, driven largely by edible oils, which made up 45.4% of agricultural imports at $17.3 billion.
  • Ongoing trade negotiations with the US, EU, and UK could reshape India's agricultural trade, with partners seeking tariff reductions and market access for key commodities.
  • Experts emphasize the need for productivity improvements through investments in research, seed technology, and sustainable farming to enhance competitiveness and reduce import dependency.