India Achieves Record $824.9 Billion in Exports for FY25, Services Sector Leads Growth

In a significant achievement for the Indian economy, the Commerce and Industry Ministry announced on Friday that India's total exports reached an unprecedented $824.9 billion in the fiscal year 2024-25, marking a solid 6.01% growth compared to the previous year. This milestone comes despite numerous global economic challenges and underscores India's growing resilience in international trade.

Services Exports Drive Overall Growth

The stellar performance was primarily fueled by a remarkable surge in the services sector, which has emerged as a consistent powerhouse for India's export economy. Services exports achieved a "historic high" of $387.5 billion in FY25, representing an impressive 13.6% increase from the $341.1 billion recorded in FY24.

The momentum in services exports remained strong even in the final month of the fiscal year, with March 2025 figures standing at $35.6 billion, demonstrating a substantial year-on-year growth of 18.6% compared to the $30 billion registered in March 2024. This consistent upward trajectory highlights the growing global demand for Indian services across various domains, including IT, telecommunications, financial services, and business process management.

Record Non-Petroleum Merchandise Exports

Adding to the positive export story, merchandise exports excluding petroleum products also reached a record high in FY25. These non-petroleum exports climbed to $374.1 billion, showing a healthy 6% growth from $352.9 billion in the previous fiscal year. This achievement is particularly noteworthy considering the challenging global trade environment and represents the highest ever annual figure for non-petroleum merchandise exports from India.

When including petroleum products, India's total merchandise exports for FY25 stood at $437.42 billion, marginally higher (0.08%) than the previous fiscal year. Specifically for March 2025, goods exports grew by 0.7% year-on-year to reach $41.97 billion.

Navigating Global Challenges

Commerce Secretary Sunil Barthwal acknowledged the difficulties faced during the fiscal year, stating that "The last financial year was difficult with so many things happening around the world." These challenges included geopolitical tensions, supply chain disruptions, fluctuating commodity prices, and economic slowdowns in several key markets.

Despite these obstacles, Barthwal emphasized that India's merchandise shipments and overall exports had reached their "highest" ever figures in 2024-25. This achievement reflects the adaptability of Indian businesses and the effectiveness of government initiatives aimed at promoting exports across various sectors.

Trade Deficit Concerns

While the export performance deserves celebration, it's worth noting that India's goods trade deficit widened in FY25 to $282.82 billion, up from $241.14 billion in FY24. This increase in the trade gap highlights the ongoing challenge of managing import dependencies, particularly in sectors such as energy, electronics, and capital goods.

Sector-Wise Performance Analysis

A closer examination of the export data reveals several sectors that have contributed significantly to the overall growth:

Services Sector Excellence

The services sector has consistently demonstrated robust performance, with IT services, business consulting, research and development, and financial services leading the way. The digital transformation accelerated by global events has further enhanced demand for Indian expertise in these areas.

Manufacturing Resilience

Within merchandise exports, several manufacturing segments have shown resilience and growth. Engineering goods, pharmaceuticals, chemicals, and textiles have maintained their competitive edge in international markets despite fierce global competition.

Agricultural Exports

Agricultural and processed food products have also contributed to the export growth, reflecting India's strengths in this traditional sector as well as value-added food processing capabilities.

Future Outlook

The record export performance in FY25 positions India favorably as it continues to pursue its ambitious export targets. The government's focus on enhancing export competitiveness through initiatives like Production-Linked Incentive (PLI) schemes, improvements in logistics infrastructure, and various trade facilitation measures is expected to further strengthen India's export capabilities.

Market diversification strategies and ongoing trade negotiations with key partners also aim to create new opportunities for Indian exporters in the coming years. The continued growth in services exports, combined with efforts to boost manufacturing exports, presents a balanced approach to sustaining India's export momentum.

As global economic conditions evolve, India's ability to maintain this growth trajectory while addressing challenges such as the widening trade deficit will be crucial for its overall economic health and its position in global trade networks.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Supreme Court Rejects JSW Steel's Resolution Plan for Bhushan Steel, Orders Liquidation

In a landmark judgment that could have far-reaching implications for India's bankruptcy framework, the Supreme Court on Friday rejected JSW Steel's resolution plan for Bhushan Steel and Power Limited (BSPL) and ordered the company's liquidation under the Insolvency and Bankruptcy Code (IBC). The verdict represents a significant setback for JSW Steel and raises important questions about compliance with insolvency regulations.

Court Finds Multiple Violations of IBC Provisions

The Supreme Court bench, comprising Justices Bela M Trivedi and Satish Chandra Sharma, delivered a comprehensive 105-page judgment that highlighted "flagrant violations" of the IBC by multiple stakeholders involved in the resolution process. The court's decision effectively overturns previous approvals granted by the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT).

Justice Trivedi, who authored the judgment, offered a scathing critique of all key participants in the insolvency proceedings, including the resolution professional, the Committee of Creditors (CoC), and JSW Steel itself.

Specific Failures Identified by the Court

Resolution Professional's Shortcomings

The court found that the resolution professional had "utterly failed to discharge his statutory duties" as required under the IBC and CIRP (Corporate Insolvency Resolution Process) regulations throughout the proceedings. This failure represented a fundamental breach of the professional oversight that should have safeguarded the integrity of the resolution process.

Committee of Creditors' Lapses

In a particularly significant observation, the bench determined that the CoC had failed to exercise its commercial wisdom properly when approving JSW's resolution plan. According to the judgment, the plan was "in absolute contravention of the mandatory provisions of the IBC and CIRP regulations."

The court further noted that the CoC had taken contradictory positions before the court and had accepted payments from JSW "without any demurer," effectively supporting the implementation of what the court termed an "ill-motivated plan" that worked against creditors' interests.

JSW Steel's Non-Compliance

Perhaps most critically, the judgment highlighted that JSW Steel had secured approval for its resolution plan under "the garb of complying with amendments" to CIRP regulations. More damaging was the court's finding that even after obtaining NCLAT approval, JSW "wilfully contravened and didn't comply with the terms of the approved resolution plan for about two years," an action that the court determined had "frustrated the very object and purpose of the IBC."

Previous Judicial Orders Deemed "Perverse"

The Supreme Court did not mince words in characterizing the earlier judicial decisions in this matter. It declared the NCLT order of September 5, 2019, and the NCLAT judgment of February 17, 2022, as "perverse," lacking jurisdiction, and consequently set them aside.

The judgment stated: "The impugned judgment passed by the NCLAT in allowing the company appeal of JSW and issuing the directions without any authority of law and without jurisdiction is perverse, coram non judice and liable to be set aside."

Liquidation Ordered Under Constitutional Powers

In its final determination, the court exercised its powers under Section 33(1) of the IBC and Article 142 of the Constitution to direct the NCLT to initiate liquidation proceedings against BSPL. This rare invocation of the court's constitutional powers underscores the gravity with which it viewed the violations in this case.

JSW Steel's Response

Following the judgment, JSW Steel issued a regulatory filing to the National Stock Exchange and BSE Limited, acknowledging the Supreme Court's decision. The company stated: "We learnt that the Supreme Court pronounced judgment today, i.e., May 2, 2025, rejecting the resolution plan submitted by the company and approved by NCLAT on certain grounds."

The filing further noted that the company was awaiting a formal copy of the order to "understand the grounds for rejection in detail and its implications" before deciding on its next steps.

Market Implications

This ruling has significant implications for ongoing and future insolvency proceedings in India. It establishes a strong precedent regarding adherence to IBC provisions and emphasizes that approvals at lower tribunals do not guarantee protection if fundamental violations of the law are found.

For investors and stakeholders in JSW Steel, the judgment creates uncertainty regarding the company's financial exposure from its prior payments made under the previously approved resolution plan. The court has indicated that these payments, along with any equity contributions, will need to be addressed according to previous statements made by representatives of the CoC.

Broader Impact on India's Insolvency Framework

This judgment reinforces the Supreme Court's role as the ultimate guardian of the IBC's integrity and sends a clear message that procedural compliance cannot be sacrificed in the pursuit of corporate resolutions. It also highlights the responsibilities of resolution professionals and creditor committees to ensure that approved plans strictly conform to legal requirements.

The case ultimately demonstrates that even large corporate entities cannot circumvent the mandatory provisions of India's bankruptcy laws, a principle that strengthens the overall governance framework for corporate insolvencies in the country.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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