India's merchandise trade deficit widened to $25.05 billion in December 2025, as imports continued to outpace exports, according to data released by the Ministry of Commerce & Industry on Thursday. The deficit was higher than $23.9 billion recorded in December last year, reflecting elevated import demand amid global uncertainty.
Merchandise exports stood at $38.51 billion during the month, registering a modest year-on-year increase from $37.80 billion in December 2024. Export growth was supported by gains in electronics goods, pharmaceuticals, engineering goods, marine products, meat and dairy, even as demand conditions remained uneven across major global markets.
Merchandise imports, however, rose sharply to $63.55 billion in December, driven by higher inbound shipments of crude oil, electronic goods, chemicals, machinery and fertilisers, pushing the trade gap wider.
For the April-December 2025 period, cumulative merchandise exports rose 4.33% to $451.2 billion, while imports increased 4.95% to $547.8 billion, taking the merchandise trade deficit to $96.6 billion, up from $88.4 billion in the same period last year.
Services trade continued to provide a cushion. Services exports in December are estimated at $35.5 billion, while services imports stood at $17.4 billion, resulting in a healthy surplus that helped offset part of the merchandise trade gap.
Commerce Secretary Rajesh Agrawal said India's focus on export diversification and services-led growth helped manage external pressures, even as domestic demand keeps imports elevated.
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