Smartphones, pharma drive India’s increasing share of bilateral trade with G7 nations: Report

India’s bilateral merchandise trade with the G7 countries has been hitting a steady 13% CAGR from FY21 and has a healthy trade surplus of $28 billion, shows an analysis by Rubix Data Sciences. The smartphone and pharmaceutical segments are driving this trade surge, the report adds.

The growing trade and a healthy trade surplus with the G7 nations–the U.S., the U.K., Germany, France, Italy, Canada, and Japan–indicate the growing confidence of Indian industries in tapping the most advanced economies, the company states in a recent note.

According to Rubix, India’s bilateral goods trade with G7 countries stood at $248 billion in FY25. Exports to these nations touched $138 billion, while imports totalled $110 billion, with a trade surplus of $28 billion. It pointed out that India maintained a surplus with four key G7 economies: the U.S., the U.K., France, and Italy.

Telecom transmission equipment (including smartphones) and pharmaceuticals have emerged as top exports. While India’s total mobile phone exports across all markets registered a 55% year-on-year growth to touch $24 billion in FY25, pharmaceutical exports continued to hold global significance, catering to more than 40% of the generic drug demand in the U.S. and 25% of total pharmaceutical consumption in the U.K., Rubix analysis says.

Over the past five years, the share of India’s exports to G7 nations rose from 29% to 31%, while imports from these countries dropped from 18% to 15%, signalling a positive shift in India’s global trade positioning, it said.

"India's growing trade surplus with G7 countries is not just a statistic; it’s a sign of how Indian industries, especially MSMEs, are stepping onto the global stage with confidence. From mobile phones to life-saving medicines, our exports are gaining trust and traction,” said Mohan Ramaswamy, co-founder and CEO of Rubix Data Sciences.

Set up by experienced risk professionals, Rubix Data Sciences helps businesses take prudent credit risks, build a robust supply chain, and monitor compliance for their counterparties in India and globally.