India’s overall trade deficit, which combines merchandise and services, widened to USD 11.72 billion in July 2025, up from USD 10.10 billion in the same month last year, driven by a faster rise in imports compared to exports, according to data released by the Commerce & Industry Ministry.
The country’s exports grew to USD 68.25 billion in July 2025, up from USD 65.31 billion in July 2024. However, imports rose at a sharper pace, reaching USD 79.99 billion compared to USD 75.41 billion a year earlier.
The widening deficit comes amid global trade uncertainties and the backdrop of 50 per cent reciprocal tariffs announced by US President Donald Trump.
Commenting on the figures, Commerce Secretary Sunil Barthwal said, “Despite an uncertain global policy environment, India’s exports—both merchandise and services—have grown substantially in July as well as in the financial year 2025-26 from April to July. The growth is much higher than the global export trend.”
He added, “Major contributors to merchandise export growth in July include engineering goods, electronic goods, gems and jewelry, drugs and pharmaceuticals, and organic and inorganic chemicals.”
The widening gap between exports and imports underscores India’s continued demand for imported goods and services, even as outbound shipments demonstrate resilience amid global economic challenges.
Earlier months in 2025 had shown a different trend. In June, India’s trade deficit narrowed to USD 3.51 billion, down from USD 7.30 billion in June 2024, as exports outpaced imports. In May, the deficit fell to USD 6.62 billion from USD 9.35 billion in the same month last year, with exports rising to USD 71.12 billion from USD 69.20 billion in May 2024.
The government’s initiatives, including the Production Linked Incentive (PLI) scheme across 14 sectors such as electronics, telecom, and EV batteries, have supported export growth, enhanced global competitiveness, attracted investments, and reduced import dependence.
India has set an ambitious target of achieving USD 1 trillion in exports for the financial year 2025-26. Free trade agreements signed or under negotiation, including recent deals with the United Kingdom and the UAE, are expected to further boost exports.
-ANI
