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Economic Review May 20256www.projectstoday.comgoods. Agricultural and resource-based products such as fruits and vegetables, mica, and coal also played a role in supporting the growth.Looking at merchandise trade specifically, exports in March 2025 totalled US$ 41.97 billion, slightly higher than the US$ 41.69 billion recorded in March 2024. Imports rose more significantly, from US$ 57.03 billion in March 2024 to US$ 63.51 billion in March 2025.Cumulatively for FY 2024-25, merchandise exports were flat at US$ 437.42 billion, while imports rose to US$ 720.24 billion from US$ 678.21 billion in FY 2023-24. This led to a merchandise trade deficit of US$ 282.83 billion compared to US$ 241.14 billion in the preceding fiscal year.Non-petroleum and non-gems and jewellery exports in March 2025 were estimated at US$ 34.17 billion, showing an improvement from US$ 33.66 billion in March 2024. Imports in the same category rose from US$ 35.85 billion in March 2024 to US$ 37.76 billion in March 2025.Over the financial year, non-petroleum and non-gems and jewellery exports reached US$ 344.26 billion, up from US$ 320.21 billion in FY 2023-24. Imports under this category also increased, reaching US$ 453.62 billion, compared to US$ 424.67 billion in the previous fiscal.Services TradeIn the services segment, exports during March 2025 were estimated at US$ 31.64 billion, rising from US$ 30.01 billion in March 2024. Imports of services during March 2025 declined to US$ 13.73 billion, down from US$ 16.60 billion a year earlier.For the full fiscal year 2024-25, services exports were valued at US$ 383.51 billion, up from US$ 341.06 billion in FY 2023-24. Services imports for the same period stood at US$ 194.95 billion, compared to US$ 178.31 billion in the preceding year. This led to a services trade surplus of US$ 188.57 billion, higher than the US$ 162.75 billion recorded in FY 2023-24.The data indicated that while merchandise exports remained largely stagnant, gains were observed in the services sector and in non-petroleum product categories. The overall increase in trade volume also led to an expanded trade deficit, driven largely by higher merchandise imports.INFLATIONThe annual rate of inflation based on all India Wholesale Price Index (WPI) stood at 2.05 percent (provisional) for the month of March 2025 (over March 2024). Positive rate of inflation in March 2025 is primarily due to increase in prices of Food products, Food articles, Electricity, Textiles and other Manufacturing.Changes in Major WPI Categories:Primary Articles index decreased by 1.07 percent to 184.6 in March 2025 from 186.6 for the month of February 2025. Price of Crude petroleum & Natural gas (-2.42 percent), Non-food Articles (-2.40 percent) and Food articles (-0.72 percent) decreased in March 2025 as compared to February 2025. The price of Minerals (0.31 percent) increased in March 2025 as compared to February 2025.Fuel & Power index for this major group decreased by 0.91 percent to 152.4 in March 2025 from 153.8 for the month of February 2025. Price of Electricity (-2.31 percent) and Mineral oils (-0.70 percent) decreased in March 2025 as compared to February 2025. The price of Coal remained same as in the previous month.Manufactured Products index for this major group increased by 0.42 percent to 144.4 in March 2025 from 143.8 for the month of February 2025. Out of the 22 NIC two-digit groups for manufactured products, 16 groups witnessed an increase in prices, 5 groups witnessed a decrease in prices and one group remained stagnant. WPI Food Index consisting of Food Articles from primary articles group and Food Product from manufactured products group decreased from 189.0 in February 2025 to 188.8 in March 2025. The annual rate of inflation based on WPI Food Index decreased from 5.94 percent in February 2025 to 4.66 percent in March 2025.Final Index for the month of January 2025 (Base Year: 2011-12=100): For the month of January 2025, the final Wholesale Price Index and inflation rate for %u2018All Commodities%u2019 (Base: 2011-12=100) stood at 155.0 and 2.51 percent, respectively.PMI BUSINESS ACTIVITY INDEXManufacturing IndexIn April 2025, the Indian manufacturing sector witnessed a strengthening of growth momentum, with production