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The Export-Import Bank of India (India Exim Bank) in its latest report has said that India's merchandise and non-oil export sectors have shown positive growth for three consecutive quarters, a trend that is expected to persist in the second quarter (July-September) of the fiscal year 2025 (Q2 FY25).

It said that the country's total merchandise exports are likely to witness a year-on-year (y-o-y) growth of 4.2 per cent to reach $111.7 billion and non-oil exports are projected to see a y-o-y growth of 6.26 per cent to amount $89.8 billion, in the second quarter of the fiscal year 2025.

According to the quarterly report released by the Exim Bank, the country's economy continues to demonstrate strong activity, driven by sustained momentum in both the manufacturing and services sectors. Additionally, expected global monetary easing and improving demand prospects from trading partners are likely to bolster export performance.

However, the report noted that the forecast is not without risks. Uncertain prospects for advanced economies, geopolitical tensions, the ongoing crisis in West Asia, global supply chain disruptions, and increasing geo-economic fragmentation pose potential challenges that could impact these projections.