India's Merchandise Trade Deficit Widens To $25.04 Billion In December As Imports Jump

India’s merchandise trade deficit widened slightly in December 2025, driven by a strong rise in imports even as exports remained broadly flat, according to the official data from the Ministry of Commerce and Industry.

India’s goods exports in December 2025 stood at $38.51 billion, which is 1.86% higher than the $37.8 billion recorded in the same month last year. In contrast, imports jumped to $63.55 billion, compared with $58.43 billion in December 2024.

India’s overall exports in December stood at $74.01 billion, marginally lower than $74.77 billion recorded in the same month last year. In contrast, imports rose significantly to $80.94 billion, compared with $76.23 billion in December 2024. As a result, the country’s overall trade deficit expanded

to $6.92 billion in December 2025, a sharp increase from $1.46 billion in the corresponding period a year ago.

“US exports have grown on-year in the first nine months of the (fiscal) year,” Rajesh Agrawal, commerce secretary, told reporters, adding total exports could be more than $850 billion in the current fiscal year ending March.

The country’s push to diversify exports toward China, Russia and the Middle East, backed by incentives and planned trade pacts, including with the EU, has cushioned shipments after US President Donald Trump raised tariffs on some Indian goods to 50% in late August.

Indian and US leaders are holding discussions for a bilateral trade deal, after the negotiations collapsed last year amid a breakdown in communication between the two governments.