NEW DELHI: India’s overall trade deficit (merchandise and services combined) widened to $11.72 billion in July 2025, up from $10.10 billion in the same month last year, driven by a sharper rise in imports than exports, according to the data released by the Commerce & Industry Ministry.
The data shows that the overall exports stood at $68.25 billion in July 2025, marking a growth from the same month of the previous year at $65.31 billion. On the other hand, imports of the country grew at a faster pace, reaching $79.99 billion compared with $75.41 billion a year earlier. The deficit figures come amid the uncertain global trade conditions and announcements of 50 per cent reciprocal tariffs announced by US President Donald Trump.
Commenting on the trade figures, Commerce Secretary Sunil Barthwal said, “Despite uncertain global policy environment, exports both merchandise as well as services estimates in July as well as in the financial year 2025-26 from April to July, period for both July as well as for April to July period have grown substantially and much higher than the global export growth”.
“So, for both July month as well as for the month for the period of April to July, India’s exports have done very well now. The major drivers of these merchandise exports growth for July month include engineering goods, electronic goods, gems and jewelry, drugs and pharmaceuticals and organic and inorganic chemicals”, he added.
The widening gap between exports and imports underscores continued demand for imported goods and services, even as India’s outbound shipments show resilience despite global economic uncertainties. In June, India’s overall trade deficit had narrowed significantly to $3.51 billion, down from $7.30 billion in June 2024, as exports outpaced imports on a year-on-year basis.
The country’s trade deficit in May had also narrowed to $6.62 billion from $9.35 billion in the same month last year. In May 2025, India’s overall exports, merchandise and services combined, were reported at $71.12 billion, marking a 2.77 per cent rise on a yearly basis. The total exports in May 2024 were pegged at $69.20 billion.
Among various steps the government took to increase exports include the Production Linked Incentive (PLI) scheme in 14 sectors, including electronic goods, telecom, EV battery, to name a few. The PLI scheme of the government has helped India’s export growth and made Indian manufacturers globally competitive, attracted investments, enhanced exports, integrated India into the global supply chain and reduced dependency on imports.
The government has set a target of $1 trillion of exports in the current financial year 2025-26. The free trade agreements (FTA) signed and under negotiation with various countries are likely to boost exports. The most recent FTA was signed with the United Kingdom and the UAE. (ANI)
