India’s agricultural export sector continues to show resilience in the face of global headwinds, with Q3 FY25 witnessing steady growth, driven largely by a surge in cereal exports, particularly rice. According to the latest Trade Watch report released by the Department of Commerce and NITI Aayog, India’s agricultural and allied exports recorded a 1.2% year-on-year increase, reaching $13.1 billion, up from $12.9 billion in the same quarter last year.
This modest uptick comes at a time when global food prices have softened and international demand for agricultural commodities has weakened. Despite these pressures, India has maintained a stable export performance, underscoring the sector’s resilience and adaptability amid an uncertain global trade landscape.
One of the biggest contributors was the 75.2% growth in cereals exports, following the lifting of export restrictions on select rice categories in October 2024. This policy adjustment significantly boosted outbound shipments, meeting rising international demand and reinforcing India's position as a dependable supplier in global grain markets.
Wider Trade Context and Agricultural Impact
While India’s overall merchandise exports grew by 3% in Q3 FY25 to $108.7 billion, agriculture’s contribution remained steady, even as global demand contracted. Non-petroleum exports rose by 12.5%, with agri-products playing a key role in this expansion.
India’s farm exports also gained from regional trade trends. Exports to ASEAN nations, particularly Singapore, saw a sharp rise from $0.6 billion to $2 billion, with food and agro commodities forming a major share. Similarly, exports to West Africa and South Asia grew by 26.5% and 16.6%, respectively, highlighting expanding regional demand for Indian agricultural products.
Despite this momentum, India’s global share in agricultural exports remains below 3%, highlighting significant untapped potential. Experts argue that scaling up will require a stronger push toward value-added products, crop diversification, and targeted market access strategies.
Dr. Arvind Virmani, Member of NITI Aayog, congratulated the team behind Trade Watch for delivering a data-rich, analytically sharp publication. He emphasized that India’s evolving trade engagement reflects deeper economic advancement, driven by competitiveness, innovation, and strategic alignment with markets such as the United States.
Dr. Virmani noted that, in a time when global trade is being reshaped by geopolitical shifts, technological changes, and policy uncertainty, the edition serves as a valuable resource for policymakers, industry, and academia. He emphasized that it offers forward-looking recommendations to improve trade facilitation and strengthen India’s participation in global markets.
Looking Ahead: Challenges and Opportunities
India’s Q3 agricultural export performance tells a story of both achievement and opportunity. While cereals surged, other sectors held steady, signaling the need for further investment in climate-resilient crops, organic certification, and processed food exports to unlock higher-value segments.
Policymakers stress the importance of logistics upgrades, compliance support, and FTA-driven market access to ensure future competitiveness. As nations worldwide seek trusted sources of food and farm inputs, India stands poised to become a key player, provided it deepens its trade capabilities and agricultural transformation.
Highlights of Trade Watch – Q3 FY25
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Agricultural exports rose 1.2%, from $12.9B to $13.1B in Q3 FY25.
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Cereal exports led the growth, up 75.2% YoY, post rice policy reform.
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Exports to ASEAN, West Africa, and South Asia saw double-digit increases.
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India’s global agri-export share remains below 3%, pointing to growth potential.
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Experts call for innovation, value addition, and strategic policy support to strengthen India’s global agri-trade presence.
