Trade Deficit Expands To Five-Month High In April

India's trade deficit expanded to $26.42 billion in April as compared to $21.54 billion in March, according to data from the Ministry of Commerce and Industry on Thursday.

Merchandise exports grew 9% annually to $38.49 billion in April, while merchandise imports grew 19% annually to $64.91 billion. On a monthly basis, while merchandise exports fell by 8.2% compared to March 2025, imports grew by 2.2%.

The merchandise trade deficit widened further in April due to an unseasonal rise in imports, likely driven by higher volume of oil imports, according to a research note by Barclays. Exports, on the other hand, underperformed. Exports to the US saw continued double-digit growth, while imports from China noticeably picked up in March-April. 

"FY26 should be a good year for us despite all the external factors we face," Commerce secretary Sunil Barthwal said. Several free trade agreements are expected to be concluded soon by the ministry, with the government working on New Zealand and the EU FTA actively currently.

Services exports rose by 17% to $35.3 billion for the month, while imports rose by 4.7% to $17.5 billion. As such, the total trade deficit was at $8.65 billion.